Excerpt from section 1 of the Trusts (Capital and Income) Bill, currently in the Lords:
Disapplication of apportionment etc. rules
(1) Any entitlement to income under a new trust is to income as it arises (and accordingly section 2 of the Apportionment Act 1870, which provides for income to accrue from day to day, does not apply in relation to the trust).
(2) The following do not apply in relation to a new trust—
(a) the first part of the rule known as the rule in Howe v. Earl of Dartmouth (which requires certain residuary personal estate to be sold);
(b) the second part of that rule (which withholds from a life tenant income arising from certain investments and compensates the life tenant with payments of interest);
(c) the rule known as the rule in Re Earl of Chesterfield’s Trusts (which requires the proceeds of the conversion of certain investments to be apportioned between capital and income);
(d) the rule known as the rule in Allhusen v. Whittell (which requires a contribution to be made from income for the purpose of paying a 15 deceased person’s debts, legacies and annuities).
(subject to an contrary intention)