Section 61 — Trusts Act 2019: Apportionment of receipts and outgoings between income and capital

61 Apportionment of receipts and outgoings between income and capital (1) A trustee’s powers under subsection (2) may be exercised only— (a) if the exercise of the power is fair and reasonable in all the circumstances; and (b) in accordance with accepted business practice. (2) A trustee may— (a) apportion any receipt or outgoing relating to any period of time between the income and capital accounts, or charge any outgoing or credit any receipt exclusively to or from income or capital: (b) transfer funds between capital and income accounts— (i) to recover or reimburse an outgoing previously charged to the account that is to receive the funds: (ii) to recover or deduct any receipt previously credited to the account from which the funds are to be recovered: (c) deduct from income an amount to meet the cost of depreciation, and add the amount to capital. (3) This section extinguishes the rules of common law and equity relating to the apportionment of receipts and outgoings. (4) If a trustee is the landlord, tenant, vendor, or purchaser of land, the apportionment rules in the Property Law Act 2007 apply in respect of that land.