Fixed interest

Interest, at a given time, of a person as a beneficiary of a trust (but for section 7.11.1 of the Taxation Act ), provided that no amount of the income or capital of the trust to be distributed at any time in respect of any interest in the trust depends on the exercise by any person of any discretionary power, other than:

• the power that is consistent with normal commercial practice and with the terms that would be acceptable to the beneficiaries of the trust if the beneficiaries were dealing with each other at arm's length;
• the exercise of the power will not materially affect the value of an interest as a beneficiary of the trust relative to the value of other such interests under the trust.