Foundations

Foundations

A private foundation is a legal entity set up by an individual, a family or a group of individuals, for the benefit of the founders. A foundation can also have charitable or philanthropic purposes. It has long been associated with civil law jurisdictions, most notably Liechtenstein (but also Austria, Switzerland, Panama, St Kitts, Seychelles, Nevis, Anguilla, Malta, Curaçao and the Netherlands Antilles) and less frequently in common law countries such as the Bahamas (introduced in 2004). Recent years have also seen common law jurisdictions such as Jersey, the Isle of Man, Guernsey and Mauritius introduce legislation allowing the establishment of foundations.

Furthermore, in 2018 the Dubai International Financial Centre (DIFC) introduced the Foundations Law DIFC Law No. 3 of 2018 (as amended) (Foundations Law). The Foundations Law was the subject of an important decision in 2020, by the Court of Appeal of the DIFC on the interpretation of the statutory regimes in the DIFC governing trusts and foundations. See News Analysis: DIFC Court of Appeal gives pioneering advisory judgment on trusts and foundations regimes.

General information

Foundations have their origins in civil law countries. An early forerunner

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Private Client News

HMRC sends reminder letters on foreign tax credit relief compliance requirements

HM Revenue and Customs (HMRC) has issued reminder letters through its Wealthy team to individuals who claimed foreign tax credit relief in 2023/24. The letters are intended to ensure that recipients understand the criteria for the relief when making similar claims in 2024/25, particularly emphasising the requirement to verify provisions of relevant Double Tax Treaties. HMRC has advised letter recipients to review their 2023/24 tax returns and make any necessary amendments. The correspondence warns that penalties and interest may be charged if HMRC opens an enquiry and discovers errors. The reminder covers foreign tax credit relief for both employment income and non-employment income.

Private Client weekly highlights—20 November 2025

This week’s edition of Private Client highlights includes: (1) changes to fees for grant of representation applications; (2) the government’s announcement that a consultation on cohabitation and financial remedies is planned for Spring 2026; (3) A D Bly Groundworks and Civil Engineering Ltd v RCC, in which the Court of Appeal dismissed an appeal for tax deductions for an Unfunded Unapproved Retirement Benefit Schemes; (4) the final Charities Act 2022 provision which allows charities to make ex gratia or moral payments comes into force on 27 November 2025; (5) the Law Society joins professional services leaders in writing to the Chancellor to oppose LLP tax proposals; (6) Kieran Corrigan v OneE Group, where a company director was held personally liable for misuse of confidential information; (7) analysis of the FTT’s decision in Moir Management on penalties for DOTAS compliance failures, and (8) Font v Revenue and Customs Commissioners, in which the Administrative Court rejected an application for judicial review of the taxpayer’s treaty residence status.

Question of the week: H and W each own a half share of the family home. In his Will, H has created an interest in possession trust over his half share in favour of W with a right of occupation. Could the trustees force a sale of the house against W's wishes?

This Q&A considers whether, if H and W each own a half share of the family home and H’s Will creates an interest in possession trust over his half share in favour of W with a right of occupation, the trustees could force a sale of the property against W’s wishes.

Final Charities Act 2022 provision to come into force on 27 November 2025

The Charity Commission has confirmed that the remaining section of the Charities Act 2022—covering how charities may make ex gratia or moral payments—will take effect on 27 November 2025. The change completes implementation of the Act, allowing trustees to delegate moral payment decisions and make certain payments without Commission authority.