Commentary on Sections Overview Overview
1340.This Chapter contains an introduction to the Part and some basic definitions.
1341.There is no attempt to define a settlement or particular types of settlement, although Chapter 2 defines “settled property” and “settlor”.
1342.While it is often useful in practice to categorise a settlement either as an interest in possession settlement (under which the beneficiaries are entitled to the settlement income as it arises) or as an accumulation or discretionary settlement (under which income can be accumulated or paid to beneficiaries at the trustees’ discretion), some settlements are mixed (in that there are both sorts of beneficiary).
1343.The rules in this Part are written so that they apply having regard to the treatment of the income rather than the type of settlement.