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Jargon Buster

Disabled trust

A trust set up for beneficiaries who qualify as being disabled, under FA 2006.

Discretionary trust

A trust where none of the beneficiaries has a right to a fixed amount of income or capital. The trustees have complete power to decide as to whom to give income/capital and when.

Disposal

The trigger for CGT purposes. A sale or a gift is a disposal. A gift or sale between connected parties is treated as being a disposal for a consideration equal to full market value.

Domicile

The basis (with residence) for UK taxation. Individuals usually inherit their father’s domicile on birth and cannot change their own domicile until reaching age 16.

Deferred Member

A person who has rights under a scheme or arrangement which have not yet come into payment. As distinct from an Active Member and a Pensioner Member.

Defined Benefit Scheme

Also referred to a DB Scheme or a Final Salary Scheme. It is a scheme where the level of benefit payable to a member is a specified amount regardless of the funding position of the scheme.

Defined Contribution Scheme

Also referred to as a DC Scheme or a Money Purchase Scheme. It is a scheme where the amount of benefits payable depends solely on the amount of money in the member's "pot" (basically, the contributions made to the scheme and any investment return).

DB

Defined Benefit

DC

Defined Contribution

Dependant

HMRC has particular requirements about who satisfies the test of being a dependant. It includes spouses and civil partners, children up to 23 (or older if dependent on the member), or someone else if certain dependency tests are satisfied.

Disclosure

Principally, the disclosure of information requirements 1996 which require information to be provided to members. Broadly the information has either to be provided automatically (usually, the information provided in the member's scheme booklet) and information that has to be provided on request (such as a copy of the scheme rules). Employers also now have certain requirements to consult with members where specified changes are being proposed.

Articles

New UK residence rules

The UK Government plans to introduce a new residence test. The aim originally was to bring these new rules into effect from 6 April 2012, but this has now been postponed to 6 April 2013. This is a summary of the current proposals, as amended by the draft legislation that was published in December 2012. It is possible the rules could be changed again before they come into force.

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