Drummond v Collins [1915] 6 TC 525

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 neccessary or advisable.

The assessments were affirmed by HL as being on profits or gains from foreign possessions liable to income tax.