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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Trusts: definition: trust

The word `TRUST’ describes a relationship between certain persons

  • which is recognized by the law
  • concerned with particular property, and
  • enforceable by reference to rules of trust law.

There are five ingredients in this relationship in the normal case, described in TCGAas a ‘settlement’.

  1. A settlor (CG33021)

  2. Trustees (CG33022)

  3. Beneficiaries (CG33024)

  4. Settled Property (CG33028)

  5. Purposes (CG33029).

(Note that in England & Wales and Northern Ireland but not in Scotland the wordtrust’ traditionally is used to describe particular obligations; several parts of TCGArefer to “property being held on trusts that secure…”.