TSEM1105 - An introduction to trusts: interest in possession

There is no statutory definition of ‘interest in possession’.

A Board’s Press Notice dated 12 February 1976 indicates that an interest in possession

‘exists where the person having the interest has the immediate entitlement (subject to any prior claims by the trustees for expenses or other outgoings properly payable out of income) to any income produced ….. as the income arises …..’.

See CG36320 for a more detailed explanation.

Sometimes we refer to interest in possession trusts as ‘non-discretionary’ trusts.