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Official guidance
Capital Gains Manual

CG37850P · Capital Gains Manual: Trusts and Capital Gains Tax: Transactions creating separate settlements: Form of the transaction

  • CG37851 · Separate settlements: form of the transaction: power in wider form
  • CG37852 · Separate settlements: form of the transaction: power in wider form
  • CG37853 · Separate settlements: form of the transaction: power in wider form
  • CG37854 · Separate settlements: non-exhaustive trusts and revocable trusts
  • CG37855 · Separate settlements: non-exhaustive trusts and revocable trusts
  • CG37856 · Separate settlements: preservation of powers of old settlement
  • CG37857 · Separate settlements: preservation of powers of old settlement
  1. Capital Gains Manual: Trusts and Capital Gains Tax: Transactions creating separate settlements: Form of the transaction: Contents
  2. Separate settlements: form of the transaction: power in wider form

CG37852 | Separate settlements: form of the transaction: power in wider form

From HM Revenue & Customs · Capital Gains Manual

In Bond v Pickford the trustees had several different powers which they could have used, but the one which they used was clearly in `narrower form’, because

a) it clearly contemplated that the trustees of the original settlement would continue to administer the property, and
b) did not provide for any delegation of power to other trustees.

The latter is in general the most important factor in determining that a power is in narrower form. You should look for references to other trustees having powers or being able to exercise discretion. A statutory power of advancement is a power in `wider form’.

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