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Trusts: Capital and Income

My honourable friend the Parliamentary Under-Secretary of State, Ministry of Justice (Bridget Prentice) has made the following Written Ministerial Statement. In May 2009, the Law Commission of England and Wales published its report: Capital and Income in trusts: Classification and Apportionment (Law Com no. 315). The report makes three legislative recommendations to reform aspects of the law on the classification and apportionment of income and capital in trusts. The purpose of these reforms is to simplify and modernise trust law rules that create unnecessary expense, litigation and difficulty to trustees of both private and charitable trusts; to decrease the regulatory burden on the Charity Commission; and to facilitate total return investment by charities. The Government have carefully considered the report and are pleased to announce that they accept the Law Commission’s recommendations. It is now intended to consult on these reforms and the proposed draft legislation.