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.