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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: preservation of powers of old settlement

CG37857 | Separate settlements: preservation of powers of old settlement

From HM Revenue & Customs · Capital Gains Manual

In Ewart v Taylor 57TC, at page 468A, the judge said that introducing some of the powersfound in the old settlement into the deed of appointment in this way did not necessarilyprevent a new settlement from having been created if the powers were only incorporated`reverentially’, that is to say to save the draughtsmen from having to write them word forword into the text of the deed of appointment. It is necessary to consider the nature ofthe powers themselves, in deciding whether a new settlement has been brought intoexistence, not merely the manner in which they have been introduced into the deed ofappointment. See also Swires v Renton, L3278, page 5, last full paragraph.

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