Part VI Material Interest Test
Income and Corporation Taxes Act 1988 (1988 c 1) | Legislation

Part VI Material Interest Test

Interests under trusts

37

(1)ÌýÌýÌýÌý This paragraph applies in a case where—

(a)ÌýÌýÌýÌý the individual (“the beneficiaryâ€) was one of the objects of a discretionary trust; and

(b)ÌýÌýÌýÌý the property subject to the trust at any time consisted of or included any shares or obligations of the company.

(2)ÌýÌýÌýÌý If neither the beneficiary nor any relevant associate of his had received any benefit under the discretionary trust before 14th November 1986, then, as respects any time before that date, the trustees of the settlement concerned shall not be regarded, by reason only of the matters referred to in sub-paragraph (1) above, as having been associates (as defined in section 417(3) and (4)) of the beneficiary.

(3)ÌýÌýÌýÌý If, on or after 14th November 1986—

(a)ÌýÌýÌýÌý the beneficiary ceases to be eligible to benefit under the discretionary trust by reason of—

(i)ÌýÌýÌýÌý an irrevocable disclaimer or release executed by him under seal; or

(ii)ÌýÌýÌýÌý the irrevocable exercise by the trustees of a power to exclude him from the objects of the trust; and

(b)

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