The presence in a policy of insurance creating a trust
(whether under the operation of the Married Women’s Property
Act or otherwise) of a clause authorising a professional trustee to
charge for his services is not to be used as an argument for
impugning the validity of the trust.
In such a case tax where chargeable should be claimed on the
gross amount to which the claim would extend in the absence of the
charging clause, no allowance being made in the first instance for
the trustee's remuneration.
You should refer any case in which this ruling is challenged
to Technical Group.
