Income Tax Act 2007 section 466

Meaning of "settled property" etc.

Section 466 defines "settled property" for income tax purposes and clarifies which property held in trust falls within this definition and which is excluded.

• Settled property means any property held in trust, unless it is held by a nominee or a bare trustee for someone who is absolutely entitled to it
• Property is also excluded from the definition where the beneficiary would be absolutely entitled but for being an infant or otherwise lacking legal capacity
• A person is absolutely entitled to property as against a trustee if they have the exclusive right to direct how the property is dealt with, subject only to the trustee's right to use it to pay duties, taxes, costs or other outgoings
• Joint absolute entitlement by two or more persons is treated in the same way as absolute entitlement by a single person