Perpetuities and Accumulations
Act of ParliamentThis bill passed all stages in both Houses and received Royal Assent.
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Long title
To amend the law relating to the avoidance of future interests on grounds of remoteness and the law relating to accumulations of income.
Summary
<p>The Bill aims to simplify and modernise two distinct but related legal rules, the rule against perpetuities and the rule against excessive accumulations, which arise most commonly in the context of trusts. It is the first Bill to be introduced into the House of Lords under the procedure for Law Commission Bills set out in the House of Lords Procedure Committee Report of 25 February 2008. </p><p>Key areas</p><ul><li>The rule against perpetuities restricts the time period within which future interests in property must vest. In specified circumstances, the Bill would replace the existing common law and statutory perpetuity periods with a single statutory perpetuity period of 125 years. </li><li>The rule against excessive accumulations restricts the period during which trust income may be accumulated and not paid to an income beneficiary as it arises. The Bill would repeal the present rule. A 21-year maximum statutory accumulation period would apply to charitable trusts.<br></li></ul>
Progress through Parliament
- 1st reading· Lords
1 April 2009 – 1 April 2009
- Second reading committee· Lords
28 April 2009 – 28 April 2009
- 2nd reading· Lords
28 April 2009 – 28 April 2009
- 2nd reading· Lords
11 May 2009 – 11 May 2009
- Committee stage· Lords
20 May 2009 – 30 June 2009
- Report stage· Lords
13 July 2009 – 13 July 2009
- 3rd reading· Lords
20 July 2009 – 20 July 2009
- 1st reading· Commons
20 July 2009 – 20 July 2009
- Second reading committee· Commons
19 October 2009 – 19 October 2009
- 2nd reading· Commons
21 October 2009 – 21 October 2009
- Committee stage· Commons
27 October 2009 – 27 October 2009
- Report stage· Commons
2 November 2009 – 2 November 2009
- 3rd reading· Commons
2 November 2009 – 2 November 2009
- Royal Assent· Unassigned
12 November 2009 – 12 November 2009
Source: UK Parliament Bills API. Bill ID: 467.