Trusts in Scotland

Trusts in Scotland

We are incrementally developing a new set of content on Scottish private client law for Scottish practitioners. The content will provide an essential resource for Scottish practitioners, as well as practitioners in England and Wales with clients who need advice on cross-border issues.

Although there are similarities, the trust in Scottish law is conceptually different to the trust in English law. In Scotland, the law of trusts is based not on the dualism of legal and equitable ownership nor on obligations enforceable in equity, there being no distinction of law and equity in Scotland, but on the principle of property being vested in trustees as legal owners subject to the burden of their holding and administering it for the trust purposes, for the benefit of persons who have claims on the trust estate.

Furthermore, Scots law has its own trusts legislation:

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Latest Private Client News

Determining Costs Applications in the Court of Protection (Riddle v NA)

Private Client analysis: Mr Riddle appealed against DJ MacCuish’s refusal of Mr Riddle’s application for costs following his application, which failed, to be appointed to act as Deputy for NA’s property and financial affairs. Mr Riddle’s appeal was allowed by Mr Justice Harris, who went on to reconsider the decision on costs de novo, and concluded that, on the facts, Mr Riddle was not entitled to his costs from NA. The court reiterated and clarified the test to be applied in determining costs applications in the Court of Protection (COP), considering the Court of Protection Rules 2017, Rules 19.2 and 19.5. Written by Lucy Taylor, barrister, at Coram Chambers.

CGT and trusts—another round of round the world schemes (Murphy v HMRC)

Private Client analysis: Murphy v HMRC [2025] UKFTT 1503 (TC), like the Court of Appeal decisions in HMRC v Smallwood and Haworth v HMRC before it, concerns capital tax planning for offshore trusts commonly known as ‘round the world’ schemes. The scheme attempted to rely on the terms of double taxation agreements as a defence to a charge to capital gains tax on disposals of trust assets. Murphy differed from previous cases because the double taxation agreement in question was with New Zealand and was differently worded from the treaty with Mauritius considered in Smallwood. Ultimately, however, the FTT concluded that did not make a difference. The FTT did, however, reject HMRC’s restrictive interpretation of what was required for a claim to relief under the treaty. It also took a strict view of how HMRC were required to meet their burden of proof in relation to discovery assessments, finding in relation to one assessment that the requirements of section 29(5) of the Taxes Management Act 1970 (TMA 1970) were not made out on the evidence.

Private Client weekly highlights—15 January 2026

This week’s edition of Private Client highlights includes: (1) the Bona Vacantia Division’s reinstatement of the unclaimed estates list; (2) analysis of Dahlman v Oxley & Palmers Solicitors and its implications for pre-action disclosure in probate claims and orders for costs; (3) the Department for Business and Trade’s publication of draft statutory guidance clarifying ‘significant influence or control’ in relation to People with Significant Control in companies and LLPs; (4) the National Crime Agency’s guidance on indicators of foreign bribery; (5) Revenue and Customs Commissioners v Purity Ltd, in which the Court granted the first ever petition by HMRC to wind up of a tax avoidance scheme promoter under Finance Act 2022; (6) the publication of the Scottish Budget; (7) the UK’s double tax treaties with Andorra, Portugal and Romania coming into force, and (8) proposed changes to Jersey’s Trust Law which clarify the position of secured lenders.

In brief: Appeal to First-tier Tribunal–necessity to show grounds (Clayton v Charity Commissioners)

Private Client analysis:The appellant, a trustee of a charity, appealed to the First-tier Tribunal (General Regulatory) (the Tribunal) in respect of a decision of the Charity Commission. Schedule 6 to the Charities Act 2011 (CA 2011) determines the circumstances in which an appeal can be made. The Appellant had not complied with directions to specify which provision of Schedule 6 he relied upon and his claim was struck out under the Tribunal Procedure (First-tier Tribunal) (General Regulatory Chamber) Rules 2009 (the Tribunal Rules), r 8. Written by Lynne Counsell, barrister at Addington Chambers.