CHAPTER 3

Annual levy on discretionary trusts

19 Interpretation (Chapter 3)

Summary

This section defines a number of terms used in Chapter 3 of Part 3 of the Act.

Details

There are 4 definitions in the section as follows:

• “chargeable date” means 5 April and 31 December in the year 2006 and 31 December in the year 2007 and subsequent years;
• “chargeable discretionary trust” means a discretionary trust in relation to which—
  • the disponer (i.e. the settlor) is dead, and
  • none of the principal objects of the trust (if any) is under the age of 21;
• “object” and “principal objects”, in relation to a discretionary trust, have the meanings, respectively, given to them by section 14 of the Act i.e.—

“object”, in relation to a discretionary trust, means a person for whose benefit the income or capital, or any part of the income or capital, of the trust property is applied, or may be applied;

“principal objects”, in relation to a discretionary trust, means such objects, if any, of the trust for the time being as are—

• the spouse/civil partner of the disponer,
• the children of the disponer and the civil partner of the disponer, or
• the children of a child of the disponer/civil partner of the disponer who pre-deceased the disponer.

Relevant Date: Finance Act 2015