CG37562 - Absolute entitlement: part of trust fund: Lloyds Bank v Duker

Trustees may claim that this case means there is no occasion of absolute entitlement,generally because the value of the fractional share which the beneficiary would get wouldbe far less than his share of the whole of the trustees’ holding. Such a claim may beaccepted without query if

• the trustees have a majority holding and
• the beneficiary is entitled to one third or less of the trust property and
• hold-over relief could be claimed under TCGA92/S165.

In any other case the trustees should be asked for evidence of the values, which shouldbe referred to Shares and Assets Valuation on form CG30, with a covering memo. It shouldhowever be made clear to the trustees in all cases that you are merely satisfied thatthere is no deemed disposal. You must avoid agreeing to any of their valuations.