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HMRC internal manual

Capital Gains Manual

Basic terms of trust law as applied to CGT: Roome v Edwards

In considering whether there is one settlement or more, it is important to consider the particular features set out in CG33302-CG33306. The first three are

  • CG33302 Separate Property,
  • CG33303 Separate Trustees and
  • CG33304 Separate Trusts.These three features are referred to by Lord Wilberforce at 54TC389G-I. He does however call them `indicia’ of there being separate settlements, and not conclusive pointers. At the top of page 390 he says that the question must be approached in a practical and common-sense manner.

CG33305 looks at the question of separate beneficiaries. The fact that a beneficiary may benefit under several clauses is sometimes a pointer to the trusts declared in those clauses being a single settlement.

CG33306 explains that a conventional marriage settlement is generally two separate settlements.