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Dividends out of the capital profits
Dividends out of the capital profits are apportioned on the same basis as dividends out of income (Re. Doughty).
(a) Variation of securities:It would seem logical to carry out a strict apportionment between income and capital every time investments are bought or sold. If this were done, it would be necessary to divide the purchase price or sale proceeds between the pure capital element and the adjustment of income rights.
(b) Equitable apportionments:There are five leading cases where the courts have laid down rules to meet specific situations in which there is a conflict of interest between life tenant and remainderman. Equitable apportionments may be (and frequently are) barred by the will.
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