TSEM4110 - Settlements legislation: scope of statutory definition of settlement
The potential scope of the 바카라 사이트˜settlement바카라 사이트™ is extremely wide. Given the breadth of the unrestricted term the Courts have concluded that it is appropriate to impose some limitation on its scope. A purely commercial transaction at arms length is outside the meaning of 바카라 사이트˜settlement바카라 사이트™.
Settlement must include an element of bounty, as decided in the tax case of CIR v Plummer (54 TC 1). Bounty is the provision of value without any corresponding quid pro quo, usually a gift or a transfer at less than full value.
Where a settlor enters into an arrangement that he or she would not have entered into with someone with whom the individual was acting at arm바카라 사이트™s length, the arrangement is susceptible to the legislation. This conclusion is based on the decision in Jones v Garnett (78 TC 597).
For the purposes of the settlements legislation, 바카라 사이트˜trust바카라 사이트™ does not include a trust set up under a Will or intestacy.
The settlements legislation can apply to deeds of variation or family arrangement (TSEM1815).
Situations in which there is a settlement but income arising under it is not treated as that of a settlor who retains an interest (TSEM4200) are dealt with in TSEM4205+.
Tax case
CIR v Plummer 54 TC 1
Jones v Garnet 78 TC 597