Wealth and trusts quarterly digest
Welcome to our latest wealth and trusts digest. Our quarterly digest provides up to date commentary and analysis on key sector developments. It is written by our wealth and trusts teams to assist you and your clients in responding to market trends and legal developments. We would welcome the opportunity to discuss any issues you may have and always welcome feedback on the content of our publications.
Feature
Avoiding the consequences of tax planning gone wrong
What happens when a trustee’s tax planning goes wrong? The options available to trustees when they have made dispositions of property which do not produce the desired tax saving are limited. Trustees should ensure that they consider their options carefully and take professional advice to minimise the risks associated with complex tax planning.
News
Trusts Register update
Trusts liable to UK taxes are now required to report information to HMRC which will be kept on a Trust Register. Guidance issued by HMRC outlines what needs to be reported, who needs to register and when registration is required. Professional bodies are seeking clarification on certain aspects as some of the guidance is at odds with the legislation.
HMRC updates International Exchange of Information Manual
On 19 December 2017, HMRC updated its International Exchange of Information manual for recent developments affecting the Foreign Account Tax Compliance Act (FATCA), Common Reporting Standard (CRS) and the Directive on Administrative Co-operation (DAC) reporting.
New offshore tax offences
On 7 October 2017, new rules came into force creating three new strict liability criminal offences regarding failure to disclose UK tax liabilities arising from offshore assets, income or activities, where the unpaid or underreported tax exceeds £25,000.
Case reports
Barclays Wealth Trustees (Jersey) Ltd and another v HMRC
The Court of Appeal has confirmed that inheritance tax (IHT) will not apply in circumstances where a transfer between excluded property settlements takes place after a settlor becomes domiciled in the UK.
Bing Holdings and another v Hue-Williams and others
The High Court has dismissed a late notified application to amend the pleadings to include a claim for unjust enrichment on the basis that the parties had agreed a contract was in place and there was no good reason for the late application.
(1) Jane Rebecca Ong (2) Alexander Ong (3) Nicholas Ong (4) Jordana Ong (Respondents/Claimants) v Ong Siauw Ping (Appellant/Defendant)
The Court of Appeal has found that there was suffcient evidence to demonstrate that a property, and the proceeds of its sale, were held on a discretionary trust.