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HMRC internal manual

Trusts, Settlements and Estates Manual

From
HM Revenue & Customs
Updated
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Introduction to trusts: supplementary deeds: deed of appointment

A person can execute a deed of appointment to declare a new trust. The appointment can refer to

  • capital
  • income
  • both.

The person making the appointment can be the

  • trustees
  • settlor
  • beneficiary.

An appointment does not always have immediate effect. But it cannot apply retrospectively. It is effective only from the date the deed is executed, at the earliest.

Effect of an appointment

An appointment may bring the trust to an end. This can have Capital Gains Tax implications. Details are at CG37330 onwards. External customers can find this guidance at http://www.hmrc.gov.uk/manuals/cgmanual/CG37330.htm

An appointment may create an entirely new trust. This will be a separate settlement for CGT purposes. Details are at CG37830 onwards. External customers can find this guidance at http://www.hmrc.gov.uk/manuals/cgmanual/CG37830.htm.

The appointer may be the settlor of this new trust.