The income settlements legislation
Series: Farm Tax Brief ; 18(7) August/September 2003, 1-2(2)Publication details: 2003Subject(s): Summary: Settlements have traditionally been used to keep family property within the family but "Dano Ltd v Earl Cadogan and others" ([2003] EWCA Civ 783, Abs66929) shows what confusions may arise when restrictive covenants apply to settled property. The concept is clear for capital gains tax and inheritance tax purposes. However, income tax legislation has a wider definition of the term settlement and the Inland Revenue are more likely to view it as a diproportionate return to a partner who has little direct involvement in a business. This situation is most likely to affect the agricultural industry where most farmers trade as sole traders or through partnerships.| Item type | Current library | Call number | Copy number | Status | Barcode | |
|---|---|---|---|---|---|---|
| Journal article | London Journal article | ABS67024 (Browse shelf(Opens below)) | 1 | Available | 123504-1001 |
Settlements have traditionally been used to keep family property within the family but "Dano Ltd v Earl Cadogan and others" ([2003] EWCA Civ 783, Abs66929) shows what confusions may arise when restrictive covenants apply to settled property. The concept is clear for capital gains tax and inheritance tax purposes. However, income tax legislation has a wider definition of the term settlement and the Inland Revenue are more likely to view it as a diproportionate return to a partner who has little direct involvement in a business. This situation is most likely to affect the agricultural industry where most farmers trade as sole traders or through partnerships.