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HMRC internal manual

Trusts, Settlements and Estates Manual

HM Revenue & Customs
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Introduction to trusts: supplementary deeds: deed of disclaimer

A person uses a true disclaimer to refuse a gift due under a trust. Effectively the person steps aside. This allows subsequent provisions of the trust to take effect.

A disclaimer can relate to

  • capital
  • income
  • both.

A disclaimer has retrospective effect. It applies from the date that the entitlement arose. There may be a lapse of time between the entitlement arising and the disclaimer. This is not conclusive evidence that the deed cannot be a true disclaimer.

The person disclaiming

The person disclaiming is not a ‘settlor’ within Section 620(1) ITTOIA (TSEM4120). Subsequent trusts that result from the disclaimer retain their original settlor.

The person making a disclaimer may still benefit from another part of the trust income or capital. This is irrelevant. If that person seeks to impose new trusts, the deed is not a disclaimer. It is an assignment (TSEM1845).