· Payments made in pursuance of a discretion count as the income of the beneficiary to whom they are paid.
· Sums were paid of income from an American Will Trust for the maintenance of minor grandchildren of the testator. The sums paid were advances pursuant to a clause allowing payments for suitable maintenance and education of the child to be made as the trustees in their uncontrolled discretion might think nec or advisable.
· The assessments were affirmed by HL as being on profits or gains from foreign possessions liable to income tax.
· Lord Lorebourne
These were not true voluntary payments: ‘they were payments in fulfillment of the testamentary disposition for the benefit of the children in the exercise of a discretion conferred by the will. They were the children’s income.’