Capital Acquisitions Tax Consolidation Act 2003 section 14

Interpretation (Chapter 2 - once-off discretionary trust charge)

Section 14 defines two key terms — "object" and "principal objects" — used throughout the chapter dealing with discretionary trusts.

• An "object" of a discretionary trust is any person who benefits, or may benefit, from the trust's income or capital (or any part of it).
• "Principal objects" are a narrower, defined group: the disponer's spouse or civil partner, the disponer's children, and children of the disponer's civil partner.
• Principal objects also include certain grandchildren — specifically, children of a child (or of a child's civil partner) who predeceased the disponer.
• These definitions determine which beneficiaries receive favourable treatment under the discretionary trust tax provisions in later sections of this chapter.