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Trust law uses a number of distinct terms of its own. »Ê¹ÚÌåÓýappre is a comprehensive glossary in the Appendices to the Trust Estates and Settlements Manual. That manual also contains a general outline of trust law. »Ê¹ÚÌåÓýapp purpose of this chapter is to draw attention to some of the particular uses of these terms in the field of Capital Gains Tax.

»Ê¹ÚÌåÓýapp terms used in the legislation are to be given their ordinary legal meaning except where there is a specific definition in the legislation itself.

»Ê¹ÚÌåÓýapp word `settlementâ€� does not have the special extended meaning used for Income Tax. It describes any situation where there is settled property, see CG33280.

»Ê¹ÚÌåÓýapp sections of TCGA 1992 dealing with trusts often refer to the `trustees of the settlementâ€�. »Ê¹ÚÌåÓýapp settlement is the basic taxable unit for Capital Gains Tax. Tax is charged on the trustees of the settlement. »Ê¹ÚÌåÓýappre is a disposal for Capital Gains Tax purposes if assets are transferred from one settlement to another. If a new settlement is created out of an old one, see CG37800+, there is a disposal by the trustees of the original settlement of the assets which are now held in the new settlement.

CG33280 explains why it is important to decide whether there is one settlement or more and covers the principles on which you can decide whether there is one settlement or more.

»Ê¹ÚÌåÓýappre may be several trusts or funds in existence within one settlement. »Ê¹ÚÌåÓýappse may even have different trustees in exceptional circumstances, see CG33340.

Confusion is caused because terms are used in different ways. In discussing the question whether there are several settlements or not, you should always use the word settlement' and avoid the word trustâ€� although it is commonly used to describe the basic unit.