Beneficiary - TCGA92/S87
Beneficiary for the purposes of TCGA/S87 includes not just the beneficiaries identified in the trust deed, either by name or class, but also any other person who receives a capital payment from the trustees. Such a payment may be in breach of trust but given that these are private family trusts the named beneficiaries may accept the breach.
This extended definition of beneficiary does not apply if:
- The payment is treated as received by a named beneficiary, TCGA92/S97(9). This may happen if TCGA92/S97(5) applies to treat the payment as received by a named beneficiary, CG38665.
- The payment is made to trustees of another settlement, TCGA92/S97(10). TCGA92/S90 will usually apply to these payments, CG38910.
If a beneficiary dies having received unmatched capital payments those payments cannot be matched against trustees’ section 2(2) amounts for years after the year of death. They can be matched section 2(2) amounts for the year of death even if the trustees’ disposal is after the date of death.