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HMRC internal manual

Trusts, Settlements and Estates Manual

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Trust management expenses: ‘properly chargeable to income’ in general trust law: Carver v Duncan

In Carver v Duncan Lord Templeman considered two issues:

  • the trust law question of whether expenditure was properly income or capital;
  • the tax law question of the deductibility of expenses for the purpose of calculating income chargeable to what are now the special trust rates in ITA/S479.

A summary of the general principles of the case about the trust law question, drawn from the judgments referred to, is contained in TSEM8115.

A summary of the principles in the case about the tax law question, relating toaccumulation/discretionary trusts, is contained in TSEM8230.