capital money

Money arising from certain transactions relating to *settled land or land held on *trust for sale. It may arise from sale, the granting of certain leases and similar transactions, borrowing on the security of a mortgage, and other circumstances in which the money should be treated as capital of the settlement; for example, the proceeds of a fire insurance claim relating to the land. Generally capital money must be received by the trustees of the settlement, not the beneficiary. When the money is raised or paid for a specific purpose (e.g. for improvements authorized by the Settled Land Act 1925) it must be applied for that purpose. Otherwise, it is invested and held by the trustees on the same trusts as the land itself was held.