Q&As

A and B are the legal owners of a property situated in a EU state. They wish to execute a declaration of trust governed by English law stating that they hold the property on trust for A, B, C and D. Would HMRC be bound by such a declaration?

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Published on LexisPSL on 02/07/2020

The following Private Client Q&A provides comprehensive and up to date legal information covering:

  • A and B are the legal owners of a property situated in a EU state. They wish to execute a declaration of trust governed by English law stating that they hold the property on trust for A, B, C and D. Would HMRC be bound by such a declaration?

We have assumed that:

  1. A and B have the requisite capacity under English law to enter into the declaration

  2. the laws of the state in which the property is situated do not prohibit A and B from entering into the declaration

We do not have any information on whether HMRC would accept a declaration of trust over foreign property as contemplated by the question. However, we refer you to Q&A: To what extent will English law recognise and enforce in England a trust holding only foreign property, if both the trustee and beneficiary are

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