Explanatory note

These Regulations dispense with the need to deliver an account of the property comprised in a limited class of small discretionary trusts where a chargeable event occurs on or after 6th April 2002. These trusts are defined as “excepted settlements”.

In order to fall within this definition no interest in possession must subsist in the settled property which can only comprise cash, the trustees must be resident in the United Kingdom, the settlor must not have provided any additions to the settled property following commencement of the settlement or have created any other settlements on the same day and the value of the settled property at the time of the chargeable event must not exceed £1,000.