Tax avoidance, evasion and non-compliance

View Private Client by content type:

Practice notes

Precedents

Q&As

News

Latest Private Client News

Private Client weekly highlights—4 March 2021

The following Private Client news provides comprehensive and up to date legal information on Private Client weekly highlights—4 March 2021

Purposive interpretation and the settlements legislation (Clipperton v HMRC)

The following Private Client news provides comprehensive and up to date legal information on Purposive interpretation and the settlements legislation (Clipperton v HMRC)

Spring Budget 2021—views from the market

The following Private Client news provides comprehensive and up to date legal information on Spring Budget 2021—views from the market

Spring Budget 2021—Tax analysis

The following Tax news provides comprehensive and up to date legal information on Spring Budget 2021—Tax analysis

Featured Private Client content

Notaries and notarisation—notarisation

The principles of the notarial act are that it is:•an act of the notary and not of the parties named in the document•a record of a fact, event or...

Creation of trusts—blind trusts

What is a blind trust?A blind trust is a trust that is aimed at preventing conflicts of interest arising. Usually, the settlor and beneficiary of the...

Nature and classification of trusts—the three certainties

CertaintyIn order for a settlor to create a private express trust the three certainties must be present, namely:•certainty as to the intention of the...

Lifetime gifts

A lifetime gift is a gratuitous transfer of ownership of any property between living persons and not made in expectation of death. In contrast, gifts...

Practice notes

Capacity to litigate

On the face of it, there would appear to be no specific impediment, if there is no reason to suppose that a person is without capacity, in them...

9th Nov

Practice notes

Offshore trusts—offshore income gains (OIGs)

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

9th Nov

Practice notes

Trust disputes—sham trusts

The issue of sham is most likely to be raised by the settlor's creditors or former spouse if the settlor is involved in matrimonial proceedings, who...

9th Nov

Practice notes

What is an offshore trust?

A trust is formed either by lifetime gift or on death when a person (the settlor) transfers assets to another person or persons (the trustees) to hold...

Produced in partnership with Mourant Ozannes and Carey Olsen 12th Jan

Practice notes

Beddoe applications

When trustees are engaged in trust litigation, issues often arise as to how their litigation costs are to be funded. A Beddoe application is the best...

Produced in partnership with Kate Davenport QC of Outer Temple Chambers and Adele Isaacs of Bankside Chambers 12th Jan

Practice notes

Bermuda trusts

This Practice Note outlines Bermuda trust law and focuses upon its unique features and recent reforms, such as Bermuda's regime for private trust...

Produced in partnership with Vanessa Lovell Schrum and Caljonah Smith of Appleby, Bermuda 12th Jan

Practice notes

Cayman Islands STAR trusts—common uses

This Practice Note provides guidance on Cayman Islands STAR trusts. For general information about the Cayman Islands, see Practice Note: Private...

Produced in partnership with Mourant Ozannes and Carey Olsen 12th Jan

Practice notes

Trust disputes—court jurisdiction and procedure

Trust litigation has been classified as being of three types:•a dispute as to the trusts on which trustees hold the subject matter of the settlement•a...

9th Nov

Practice notes

Trustees—power of advancement

Where a beneficiary either:•is a minor (ie under the age of 18) and unmarried or•has attained majority or has married under that date but is required...

9th Nov

Practice notes

Termination of trusts—methods of termination

Duration of a trustThe duration of an express trust is subject to the restrictions imposed by the rules against remoteness of vesting and against the...

9th Nov

Practice notes

Termination of trusts—beneficiaries

Duty to distribute to the correct beneficiariesOn the termination of the trust, the trustees are under a duty to distribute the trust assets to the...

9th Nov

Precedents

Deed of appointment terminating discretionary trust

This Deed of Appointment is made on [date] by [trustee] of [address] and [trustee] of [address] (the Trustees).Background(A)This Deed is supplemental...

9th Nov

Practice notes

Situs of assets for succession and IHT

When you advise an individual on cross-border issues or offshore tax planning, it is important to establish the 'situs' (ie location) of the assets...

9th Nov

Precedents

Partial deed of revocation of lasting power of attorney

This partial deed of revocation is made on [date] by [donor] of [address].1I granted a Lasting Power of Attorney for [Financial Decisions/Health and...

9th Nov

Practice notes

UK taxation of offshore trusts—inheritance tax

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...

Produced in partnership with Jenny Wilson-Smith and Emma Haley of Boodle Hatfield 12th Jan

Practice notes

Creation of trusts in Scotland

Express creation of trustsA trust is constituted expressly where the owner of property (the truster) transfers property to trustees to hold for...

Produced in partnership with Yvonne Evans, Law Lecturer, Solicitor (non-practising), TEP, University of Dundee 12th Jan

Scottish Law

Most recent Tax avoidance, evasion and non-compliance content

Q&As

When a Foreign Account Tax Compliance Act registered trust is terminated, do any steps need to be taken to deregister the trust?

It is important to note that reporting requirements will depend on how the trust has been classified for the purposes of the Foreign Account Tax...

3rd Feb

Q&As

What are the UK’s automatic exchange of information obligations with Guernsey?

What are the UK’s automatic exchange of information obligations with Guernsey?There are three relevant sources of law on this topic:•Double Taxation...

3rd Feb

Practice notes

HMRC information powers

FORTHCOMING CHANGE: Finance Bill 2020–21 will introduce a new ‘financial institution notice’ (FIN) that can require financial institutions to provide...

2nd Feb

Practice notes

HMRC inspection powers

HMRC's powers to check a person's tax position are in Schedule 36 to the Finance Act 2008.The powers enable HMRC to:•obtain documents and information,...

2nd Feb

Practice notes

HMRC data-gathering powers

HMRC's information powers in Schedule 36 to the Finance Act 2008 (FA 2008) (see Practice Note: HMRC information powers) are supplemented by...

2nd Feb

Practice notes

Trusts—record-keeping and disclosure of beneficial ownership information

FORTHCOMING CHANGE: The EU Fifth Anti-Money Laundering Directive (5MLD) was published in the EU official journal on 19 June 2018 and came into force...

1st Feb

Practice notes

Money Laundering Regulations 2017—impact on trustees

FORTHCOMING CHANGE: The EU Fifth Anti-Money Laundering Directive (5MLD) was published in the EU official journal on 19 June 2018 and came into force...

1st Feb

Practice notes

Disclosure of tax avoidance schemes—VAT and other indirect taxes (DASVOIT)

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s...

29th Jan

Practice notes

HMRC compliance checks, enquiries and discovery

There are various options open to HMRC when it suspects that tax has not been paid, or has been underpaid. These include:•issuing a determination—this...

28th Jan

Practice notes

Transfer of Assets Abroad—EU Defence

Transfer of Assets Abroad CodePart 13, Chapter 2 of the Income Tax Act 2007 (ITA 2007) contains a key UK anti-avoidance mechanism known as the...

Produced in partnership with James Quarmby of Stephenson Harwood 27th Jan

Practice notes

The beneficial ownership register of overseas entities that own UK property

Corporate transparency is now viewed as an essential element in any strategy aimed at reducing or eliminating corruption, tax evasion, terrorist...

26th Jan

Practice notes

Profit fragmentation and tax avoidance

From April 2019, the profit fragmentation rules aim to prevent UK-resident individuals, including individual members of a partnership, and UK-resident...

26th Jan

Q&As

Where an inheritance tax instalment payment is made late, what penalties and interest may be charged by HMRC?

Inheritance tax instalment optionSection 227 of the Inheritance Tax Act 1984 (IHTA 1984) provides that where inheritance tax (IHT) is payable in...

22nd Jan

Q&As

A trust owns two US Limited Liability Companies (LLCs). The LLCs jointly own a Scottish limited partnership (SLP) which holds UK situs assets. The SLP is going to register under The Scottish Partnerships (Register of People with Significant Control) Regulations 2017. If no UK-source income is paid to the trust, do the trustees need to register the trust with HMRC under The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017?

In this Q&A we have assumed the following:•the partnership in question is a Scottish limited partnership•HMRC accepts that the US Limited Liability...

22nd Jan

Scottish Law

Q&As

A parent and son each own a beneficial interest in a holiday home. The parent makes a cash gift to the son and the son subsequently uses this cash to buy a larger share of the property from the parent. In these circumstances, does a gift with reservation of benefit or pre-owned asset tax charge arise?

There would be no gift with reservation of benefit (GWR) in the cash sum under section 102 of the Finance Act 1986. The gift was a gift of cash, so...

22nd Jan

Q&As

A testator established a testamentary nil rate band discretionary trust constituted by a debt secured over the testator’s interest in a house. The terms of the debt/charge provide that the secured amount is index-linked by reference to the RPI. The ten-year anniversary of the trust will fall shortly. How should the trustees report the amount of the debt for the purposes of IHT ten-year charge? Should they include any index-linked element of the debt? Under what circumstances would the trust qualify as an excepted settlement within IHTM06124

How should the trustees report the amount of the debt for the purposes of IHT ten-year charge? Should they include any index-linked element of the...

22nd Jan

Q&As

An individual (not domiciled in the UK) makes a gift of UK property to an individual who is resident in the UK. The donor retains a benefit in that gift. The donor then becomes domiciled in the UK. Do the gifts with reservation rules apply and therefore, would the gifted property fall within the donor's estate?

This Q&A considers the gifts with reservation of benefit (GROB) rules contained in the Finance Act 1986 (FA 1986). For the purposes of this Q&A the...

22nd Jan

Q&As

Where there is a UK Will or lifetime trust that has (a) no tax (income tax, inheritance tax (IHT) or capital gains tax (CGT)) consequences, (b) no US connections, (c) UK resident trustees and beneficiaries, and (d) UK situated trust property, including a share portfolio with discretionary management, what (if anything) are the obligations of the trust in relation to the Trust Registration Service (TRS), the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS)?

Trust Registration ServiceMoney Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI...

22nd Jan

Q&As

A non-resident trustee disposes of a UK residential property in the tax year 2017/18. The trust was settled by a UK domiciled settlor in 2002. How would any gains arising from the disposal be taxed?

On 6 April 2015, new rules came into force which levy a capital gains tax (CGT) charge on the disposal of UK residential property by non-residents,...

22nd Jan

Practice notes