Section 466 | Meaning of “settled property” etc

(1)This section applies for the purposes of the Income Tax Acts, except so far as, in those Acts, the context otherwise requires.

(2)“Settled property” means any property held in trust other than property excluded by subsection (3).

(3)Property is excluded for the purposes of subsection (2) if—

(a)it is held by a person as nominee for another person,

(b)it is held by a person as trustee for another person who is absolutely entitled to the property as against the trustee, or

(c)it is held by a person as trustee for another person who would be absolutely entitled to the property as against the trustee if that other person were not an infant or otherwise lacking legal capacity.

(4)References, however expressed, to property comprised in a settlement are references to settled property.

(5)A person is absolutely entitled to property as against a trustee if the person has the exclusive right to direct how the property is to be dealt with (subject to the trustees' right to use the property for the payment of duty, taxes, costs or other outgoings).

(6)References to a person who is or would be so entitled include references to two or more persons who are or would be jointly absolutely entitled as against the trustee.