Capital and Income in Trusts: Classification and Apportionment

HC 426

Author:

Law Commission

Publisher:

TSO (The Stationery Office)

Price: £29.75

Trusts are important to the national economy and provide a range of benefits to individuals and charitable purposes. This project affects charitable and private trusts that are set up in a way which distinguishes capital and the income it produces.

The project was referred to the Law Commission as a result of concerns about current trust law raised during the passage of the most recent piece of trust legislation - the Trustee Act 2000 - through Parliament.

The Law Commission was asked to consider, in particular:

• the rules governing the classification of trust receipts as income and capital;

• the circumstances in which trustees must apportion receipts and outgoings between income and capital; and

• the rights and duties of charity trustees in relation to investment returns on a charity's permanent endowment.

In this report, 'Capital and Income in Trusts: Classification and Apportionment (HC 426)', the Commission recommends the abolition of the equitable and statutory rules of apportionment for all new trusts and the introduction of a new rule of classification for tax-exempt corporate demergers. It also recommends a new statutory provision that will make total return investment more easily accessible to charitable trusts with a permanent endowment.

These recommendations follow extensive consultation - please see: 'Capital and Income in Trusts: Classification and Apportionment - A Consultation Paper (Consultation Paper 175)' (ISBN 9780117302617) - and have been welcomed by the Trust Law Committee.

Extent	148 pages	ISBN	9780102959475
Size	A4	Price	£29.75
Format	Paperback	Published	07 May 2009
Availability	Colour copy: 3 - 5 days	Delivery	Delivery options and charges