Taxes Consolidation Act 1997 section 794

Interpretation and application (Chapter 2)

Section 794 defines the key terms used in Chapter 2 (settlements on children), sets out when the Chapter applies, and establishes what constitutes an irrevocable instrument.

• "Settlement" is broadly defined to include any disposition, trust, covenant, agreement, arrangement, or transfer of money, property, or rights to money or property, whenever and wherever made.
• "Income" is given an extended meaning covering any income chargeable to income tax (including by deduction) and any income that would have been chargeable had it been received in the State by a resident or ordinarily resident person.
• The Chapter does not apply for any year of assessment in which the settlor is not resident in the State, nor does it apply to income settled on a permanently incapacitated minor who is not a child of the settlor or the settlor's civil partner.
• An instrument is only treated as irrevocable if the settlor cannot recover transferred income or capital from the settlement during the lifetime of the beneficiary, subject to certain protective exceptions.