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02 February 2005 / John Tallon
Issue: 3993 / Categories: Forum & Feedback
Correspondence from readers on topical subjects.

Property of a settlement


I read Martin Riley's article entitled 'A Sympathetic Approach' (Taxation 20 January 2005 page 361) on TA 1988 s 660A and Jones v Garnett with interest. Both Special Commissioners took the view (correctly I would say) that it was the share of Mrs Jones in the company from which income arose that had to be the relevant property of any statutory settlement. Mr Riley however suggests that Mr Jones had an 'asset' in the form of his 'income earning capacity' which he 'gave away' and that such asset was the settled property. He derives comfort for his view from the Order of the Court giving the wife of a footballer (Ray Parlour) maintenance related to Mr Parlour's future earnings.


With respect that view is untenable. 'Earning capacity' can at best be 'given away' only by working for...

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