As indicated in I5.1107, the examples set out in this article derive from HMRC's publication of 18 November 2004, 'A guide to the settlements legislation for small business advisers'1 as updated in certain cases in HMRC Trusts Settlements and Estates Manual.
Only the examples which still appear in the Trusts Settlements and Estates Manual have been reproduced. The Manual contains additional examples which should also be referred to. With effect from 5 December 2005 the references in the guide to a spouse, or a husband or wife, should be regarded as including references to a civil partner2.
The examples incorporate some of the views of the professional bodies and HMRC's subsequent responses.
Identifying the settlor
Example 1—Identifying who is the settlor3
Mr X is the director and owns all the 150 issued ordinary £1 shares of X Ltd. X Ltd issues 100 new ordinary £1 shares which are acquired for £100 by the X Family Trust. The trust has been established for the benefit of Mr X's family by his father,
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 17:46