Offshore trusts—taxation

Offshore trusts—taxation guidance:

This Practice Note describes the new income tax and capital gains tax (CGT) regime which applies to trusts settled by non-UK domiciliaries prior to becoming deemed...

Practice Note

The tax treatment of a distribution from a trust in the hands of the recipient is determined in the first instance by whether the distribution is income or capital. Fixed...

Practice Note

BREXIT IMPACT: As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an...

Practice Note

FORTHCOMING CHANGE: At Budget 2018, the government announced that legislation would be included in Finance Bill 2019–20 to reflect HMRC's established legal position in...

Practice Note

A AdministrationThe process starting on the date of the deceased's death and ending on the date the deceased's affairs are finalised by his personal representative(s).See...

Practice Note

Key considerations In order to access the benefits of having an offshore trust, it is vital to ensure that the management and control of the trust does, in fact, take...

Practice Note

This Practice Note is based on material originally produced by Tolley in partnership with Milestone International Tax Partners LLP but is now maintained by Lexis®PSL...

Practice Note

Brexit: As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an...

Practice Note

STOP PRESS: This Practice Note is being reviewed in light of the changes introduced by section 35 and Schedule 10 to the Finance Act 2018. For further guidance, see...

Practice Note

Various legislative provisions make up what practitioners often refer to as the 'settlements code'. Part 5, Chapter 5 of the Income Tax (Trading and Other Income) Act...

Practice Note

Capital payments made by an offshore trust to UK resident-domiciled beneficiaries are governed by a series of 'tax hierarchy' rules. The order in which to consider how a...

Practice Note

Income, capital gains and offshore income gains (OIGs) of an offshore trust can all be deemed to accrue to a UK resident beneficiary who receives a capital payment from...

Practice Note

As discussed in the UK resident non-domiciliaries—tax planning Practice Note, non-domiciled individuals resident in the UK can claim to be taxed on the remittance basis....

Practice Note

When is Sch 4C in point? A Sch 4C pool, ie a pool of gains to which Schedule 4C to the Taxation of Chargeable Gains Act 1992 (TCGA 1992) applies, is created when the...

Practice Note

Major changes to the taxation of offshore trusts were introduced in 2017 and 2018. These changes are summarised in Practice Note: Changes to the taxation of offshore...

Practice Note

Offshore income gains (OIGs) are gains realised on the disposal of interests in offshore funds which are either: • non-distributor offshore funds, or (after 1st December...

Practice Note

Background Prior to 6 April 2008, individuals who were UK resident and non-UK domiciled (RND) could benefit from offshore trusts without incurring any liability to UK...

Practice Note

This Practice Note briefly summarises the advantages and disadvantage of trustees using a company to hold investment assets, rather than directly, and covers the position...

Practice Note

The trustee borrowing rules were introduced in 2000 to counter a specific planning scheme known as a 'flip-flop'. The scheme allowed the settlor of an offshore trust to...

Practice Note

Capital payments are generally taxed by matching them against available relevant income (ARI), offshore income gains (OIGs) and capital gains in that order such that, if...

Practice Note

There is a wide range of structures that can be used to hold wealth; many use vehicles established outside the UK. This Practice Note discusses how the UK tax system...

Practice Note

Finance (No 2) Act 2017 (F(No 2)A 2017) introduced several tax reforms in relation to foreign domiciliaries, including major changes to the regime that applies to...

Practice Note

Produced in partnership with Katharina A. Byrne. It is vital that the correct procedure is followed when there is a change of trustees. Depending on the circumstances,...

Practice Note

This Practice Note was originally drafted by Owen Clutton of Macfarlanes LLP but is now maintained by Lexis®PSL Private Client. Trustee residence test The Finance Act...

Practice Note

Significance of settlor’s domicile for offshore trusts The extent of a trust’s liability to UK income tax and capital gains tax (CGT) depends on the residence status of...

Practice Note

An offshore trust is any non-UK resident trust. The trustees of offshore trusts have limited exposure to UK taxes and if they are resident in a no or low tax...

Practice Note

An offshore trust is any non-UK resident trust. The liability of trustees of an offshore trust to UK inheritance tax (IHT) is not dependent on the residence status of the...

Practice Note

When a trustee makes a mistake, it is important to remember that there are a few remedies available: rectification, the doctrine of mistake and the so-called rule in...

Practice Note
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