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.