Stenhouse’s Trustees v Lord Advocate.  BTC 8026
Outer House, Court of Session.
Judgment delivered 19 October 1983.
Capital transfer tax – Discretionary trust – Resolution to pay capital to beneficiaries after grant of indemnity in respect that one beneficiary below age permitted by trust deed – Whether capital distribution treated as made when resolution intimated to beneficiaries – Whether interests in possession created – Whether older beneficiaries’ interests severable – Finance Act 1975, Sch. 5, para. 1(9), para. 6(2).
This was an action to have it declared that a capital distribution fell to be treated as made for capital transfer tax purposes out of a discretionary trust.