»Ê¹ÚÌåÓýapp

Settlement includes any disposition, trust, covenant, arrangement or transfer of assets. Settlement may include a series of transactions which taken together are regarded as an arrangement. »Ê¹ÚÌåÓýapp courts have limited the scope of when an arrangement is classed as a settlement to where there is some element of bounty, see CIR v Plummer ([1979] STC 793 or 54 TC 1).

Arrangement

»Ê¹ÚÌåÓýapp expression ‘settlementâ€� includes any arrangement. ‘Arrangementâ€� covers a wide range of transactions or series of transactions. It can be taken to mean not only an arrangement embodied in a deed, but also an arrangement where there are associated transactions only some of which may be expressed in a deed or deeds. It can include a single transaction or a series of associated transactions where there is no formal deed at all.

It follows that it is necessary to consider any series of transactions globally. »Ê¹ÚÌåÓýappy could ultimately lead to a transfer of income, or of assets upon which income arises, from a settlor, who may or may not be named or identified in the deed or other documents. »Ê¹ÚÌåÓýappy could go to another person or persons who enjoy that income or receive that income in a fiduciary capacity for the enjoyment of others, either now or in the future.

‘Arrangement� is a term of great flexibility. In Crossland v Hawkins (39TC493) the arrangement was a series of transactions. In Jones v Garnett (78 TC 597) the arrangement was the simple issue of a share in a company where the ‘bounty� was provided by the expectation of the settlor’s subsequent behaviour.

Transfer of assets

»Ê¹ÚÌåÓýapp expression ‘settlementâ€� applies to any transfer of assets. This includes a simple gift without any deed.