This Bill has been laid before Parliament and follows most of the recommendations made by the Law Commission about the rules against perpetuities and excessive accumulations. The rule against perpetuities restricts the ability of people to control future ownership through trusts. The rule against excessive accumulations limits the amount of time a trust can add income to capital rather than paying it to beneficiaries. The rules stop people locking wealth away indefinitely.
The main provisions of the Bill are:
- introduction of a single fixed perpetuity period of 125 years;
- the perpetuity rule will not apply to an interest or right arising under an occupational pension scheme or public service pension scheme; and
- the rule will apply to interests or rights arising under other pension trust instruments such as an instrument nominating benefits under the scheme or an instrument exercising a power of advancement arising under the scheme.
View the Bill (pdf)(32.0KB)