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Home / Simons-Taxes /IHT, trusts and estates /Part I5 Settled property /Division I5.10 Income tax and CGT for trustees /Trusts with vulnerable beneficiaries / I5.1035 Trusts with vulnerable beneficiaries—overview
Commentary

I5.1035 Trusts with vulnerable beneficiaries—overview

IHT, trusts and estates

I5.1035 Trusts with vulnerable beneficiaries—overview

Trusts with vulnerable beneficiaries—summary

The aim of the vulnerable beneficiary provisions is to protect certain beneficiaries from the application of the higher income tax and CGT rates that apply to most trusts1 (see I5.1010 and I5.1015).

The special income tax and CGT reliefs described in this document (and in I5.1036–I5.1040) apply to2:

  1. Ìý

    •ÌýÌýÌýÌý income arising to trustees from property held on 'qualifying trusts' (see I5.1036) for the benefit of a 'vulnerable person' (see below), and

  2. Ìý

    •ÌýÌýÌýÌý chargeable gains accruing to trustees from the disposal of such property

The trustees and the vulnerable beneficiary must make a joint election (a 'vulnerable person election' — see I5.1039) which remains effective for as long as certain conditions

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Web page updated on 17 Mar 2025 13:21