»Ê¹ÚÌåÓýapp

Trustees use a deed of advancement to apply capital for the benefit of beneficiaries. It cannot apply retrospectively. It is effective only from the date they execute the deed. This can have Capital Gains Tax implications. Details are at onwards.

Effects of an advancement

»Ê¹ÚÌåÓýapp advancement can give someone absolute title to capital. This may have Capital Gains Tax implications. Details are at onwards . It can impose new terms on how the trust income and capital is to be dealt with. That may simply be a change of the existing trust. Or it may be a separate settlement for CGT purposes ( onwards).

It can be for a minor, unmarried child of the settlor. Section 629 ITTOIA (TSEM4300) may apply.

Trustees may use a deed to exercise their statutory powers of advancement. »Ê¹ÚÌåÓýapp deed is not strictly necessary. Trusteesâ€� powers of advancement are contained in Section 32 Trustee Act 1925 for England and Wales. »Ê¹ÚÌåÓýapp equivalent in Northern Ireland is Section 33 Trustee Act (Northern Ireland) 1958. »Ê¹ÚÌåÓýappre is no equivalent in Scotland.