Malcolm Finney looks at the meaning of absolute entitlement for capital gains tax purposesâ¯and its consequences for bothâ¯trustees and beneficiaries.
The term ‘settled property’ is defined as ‘any property held in trust’ (TCGA 1992, s 60). However, ‘any property held in trust’ (i.e., a settlement) does not include:
(a) property held as nominee or bare trustee for another person absolutely entitled as against the trustee;
(b) property held for two or more persons who are jointly absolutely entitled as against the trustee;
(c) property held for a person who is absolutely entitled as against the trustee; or
(d) property held for a person who would be absolutely entitled as against the trustee but for being a minor (or under some form of disability).
In respect of (d) above, care is needed in its interpretation. Thus (for example)
