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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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Conventional but bare trusts: payment at a particular age

It is sometimes necessary, for the purposes of determining whether a person is absolutely entitled to trust property, to decide whether the will or deed provides that a person is entitled to it only if he or she reaches a particular age, or the reference to age is merely an instruction that the property should be transferred to the person on a particular birthday. In the latter case the person is absolutely entitled or absolutely entitled but for being an infant, and TCGA92/S60 applies. It will be necessary to consider carefully the wording of the will or deed.

Help can be obtained from HMRC Trusts and Estates (Technical) if required, because generally the question matters for Income Tax purposes as well.

Suppose a will provides property for X `at age 21’ or `on attaining 21’. Is this an absolute gift which will not be paid over until 21, although as the age of majority is now 18 under the principle in CG34430 this could be claimed at 18? Or is it a gift which will only vest if X reaches that age. In the former case it is a bare trust. X is absolutely entitled but for being an infant, see CG34340. In the latter case it is settled property.