Accumulation period meaning

Private Client England & Wales glossary A Abatement When, after settling the deceased’s funeral costs, debts and liabilities, the remaining estate cannot satisfy all legacies in full, the gifts are reduced accordingly, unless the Will shows a different intention. In a solvent estate, the order for reduction appears in Part II of Schedule 1 to the Administration of Estates Act 1925. Refer to Practice Note: Payment of legacies. Accruals basis Where income is taxed on an accruals basis, it is attributed to a given tax year by reference to the number of days within that year during which the activity giving rise to the liability accrued. See Practice Note: What is the basis of income tax?. Accumulation and maintenance (A&M) trust A form of non‑interest in possession trust designed to benefit children and young people up to 25, which received favourable inheritance tax treatment between 1975 and 2006. See Practice Note: Accumulation and maintenance trusts—IHT [Archived]. Accredited Legal Representative (ALR) ...

Schedule 2 to the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) In Schedule 2 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003), the term ‘award of shares’ denotes shares that are either allocated to employees or acquired on their behalf on a particular occasion. Consequently, where a number of employees receive shares at the same time under a common invitation, each employee is regarded as having taken part in the same award of shares. A company that sets up a share incentive plan (SIP) enabling the acquisition of partnership shares has no duty to provide free shares, and the reverse also applies. An SIP may specify a qualifying period of employment, and this requirement must be identical for all participants in the plan. The maximum length of any such qualifying period will vary according to the form of award involved and whether an accumulation period applies. For further details, see Practice Note: SIPs—who can be granted an award?...

1 Definitions and interpretation 1.1 The terms below shall be interpreted as follows: Accumulation Period — with respect to Partnership Shares, the span during which the Trustee holds a Qualifying Employee’s Partnership Share Money before buying Partnership Shares or returning it to the employee; Acquisition Date — (a) for Partnership Shares where an Accumulation Period is in place, has the meaning given in paragraph 52(5) of Schedule 2; (b) for Partnership Shares where no Accumulation Period is in place, has the meaning given in paragraph 50(4) of Schedule 2; (c) for Dividend Shares, has the same meaning given by paragraph 66(4) of Schedule 2; Associated Company — has the same meaning as in paragraph 94 of Schedule 2; Award Date — in respect of Free Shares or Matching Shares, the date on which those Shares are granted; Award — (a) in respect of Free...

1 Nil Rate Band Discretionary Trust If my [ insert spouse details ] survives me, I direct my trustees to set aside either: the maximum sum or assets on which no inheritance tax arises on my death, as trustees judge; or such lesser assets or cash as they decide. This forms the “Discretionary Trust Fund” for any of: my [ insert spouse details ], my children and their issue, any trust created for the benefit of any of them, whether of income, capital or discretionary nature (each a “Beneficiary”). In shares the trustees determine by minute. The trustees may by minute award legacies, residue shares, income interests or future/contingent rights in all or part of the fund, including income accumulation, capital vesting, powers to appoint income or capital, and their discretion. Subject to that, they may accumulate income to capital during any permitted period, or (after that period shall) apply all income...