Private Client analysis: The trustee (Womble Bond Dickinson) of a discretionary trust (the Stephris Trust) for the benefit of employees of a defunct group of companies (the Powell Duffryn group) sought directions from the court on two related matters. The first was the scope of the class of beneficiaries on a true construction of the trust deed. The second was how to identify the beneficiaries within that class and distribute the fund to them. At an earlier hearing the trustee had sought to issue the claim without naming a defendant. Master Pester had given permission, but provided for the trustee to instruct an ‘Advocate to the Court’. Deputy Master Brightwell (the Deputy Master) held, on the construction point, that the trust was intended to benefit former employees of the Powell Duffryn Group, whether or not their particular employer had joined or left the group at some point after the trust was created, and regardless of the fact that the group as a whole had ceased to exist. On the point about identification and distribution, he held that the trustee should distribute the fund to those beneficiaries it had already identified. On the point of procedure, he endorsed the process Master Pester had set in train. It is the procedural side of the case that may interest practitioners most. Written by Ben Slingo, a barrister at Wilberforce Chambers.

Trustees have a variety of obligations to submit tax returns and information to HMRC. In addition to completing a self assessment trust and estate tax return (SA900) if income and/or gains arise in the trust (see Practice Note: Trusts—income tax and capital gains tax return for further guidance), trustees must complete a form IHT100 variant when a chargeable event for inheritance tax (IHT) purposes has taken place. If they fail to deliver an IHT account, an account is late or IHT is underpaid, penalties will be payable. Furthermore, trustees may need to register the trust and disclose beneficial ownership information to HMRC in order to comply with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692 (MLR 2017) (as amended by the Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020, SI 2020/991 (MLR 2020)). Form IHT100 variants The appropriate form IHT100 variants is used to inform HMRC of a chargeable event giving rise to an IHT liability, this form has been updated from August 2024 into

The courts of equity have a well-recognised jurisdiction to grant relief against the consequences of mistakes and ambiguities in a variety of contexts relating to trusts. This is not usually a matter of hostile dispute. Typically, applications to the court for such relief are a matter of ‘friendly litigation’ as the parties involved co-operate to find a solution to the problem. There may be a claim in professional negligence in the background against a professional whose advice, or lack of advice, led to the mistake in question. In such cases, the application is likely to be funded by professional indemnity insurers. Where a lack of clarity or a mistake arises, the first step is to categorise the nature of the issue to ascertain what remedy might be available. Does the issue relate to the terms of a document or the effect of a document or wider transaction? Where the terms are at issue this will either call for construction (where there is an ambiguity or lack of clarity) or rectification (where

Money Laundering Regulations 2017 and Money Laundering Regulations 2020 The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692 form part of the UK’s overall anti-money laundering and counter-terrorist financing regime. They came into force on 26 June 2017 to give effect to the EU’s Fourth Anti-Money Laundering Directive Directive (EU) 2015/849 (4MLD) and have since been significantly extended by the Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020 (MLR 2020), SI 2020/991, which implement the EU’s Fifth Anti-Money Laundering Directive Directive (EU) 2018/843 (5MLD) in relation to the registration of trusts. The Money Laundering and Terrorist Financing (Amendment) Regulations 2019, SI 2019/1511 were also made to transpose 5MLD into UK law, but these dealt with provisions other than those relating to the registration of trusts and are outside the scope of this Practice Note. In this Practice Note, references to MLR 2017, SI 2017/692 include the amendments incorporated as a result of MLR 2020, SI 2020/991 coming

This Practice Note considers the requirement of trustees to submit a Trust and Estate Tax Return (form SA900) where a trust is liable for income tax and/or capital gains tax (CGT). For guidance on the tax rules relating to trust income, expenses and capital gains and the calculation of tax liabilities, see the Trusts—income tax and capital gains tax subtopic. For commentary on completion of the Trust and Estate Tax Return for estates by personal representatives, see Practice Note: Estate tax returns and informal procedures. All UK express trusts (not just those with a UK tax liability in a particular tax year) need to be registered with the Trust Registration Service (TRS) unless exempt. See Online registration and beneficial ownership information reporting requirements for trustees below for further guidance. Requirement to submit a tax return The income and gains of trusts are assessed under the Self Assessment regime. If HMRC have issued a return or a notice to complete a return then trustees must complete a Trust and Estate Tax Return

This Practice Note examines the duties, responsibilities and powers of trustees in the context of financial remedy proceedings. It also looks at the court’s role in supervising trustees, the duty of confidentiality, the implications for disclosure, requests for disclosure by a beneficiary, non-beneficiary party or the court, and letters of wishes. It considers the trustees’ exercise of discretion to assist a beneficiary and ‘judicious encouragement’ orders in relation to the trustees of a trust. What is a trustee? Trustees hold the legal title to the trust’s assets and manage them for the benefit of the beneficiaries. They are generally chosen by the settlor, who may or may not exercise influence over future appointments during their lifetime. Professionals, lay individuals or trust companies may act as trustees. Trustees owe fiduciary duties to the beneficiaries and are subject to a range of obligations prescribed by the trust instrument, statute and equitable principles derived from case law. A trustee has a duty: • to observe the terms of the trust • to act in the best interests

Private Client analysis: This is the first time the court has considered the question of whether the power of advancement under section 32 of the Trustee Act 1925 (TA 1925) can be used to benefit the initial absolute beneficiaries onto whose interests trusts are engrafted (Hancock v Watson). The issues concerned whether the trusts in question were in Hancock v Watson form, and whether the consent of the beneficiaries who took under the engrafted trusts was required. The trustees wished to benefit the present beneficiaries of a number of sub-funds by advancing the capital to them which would prejudice the interests of unborn beneficiaries who opposed the application. The court held that the trustees could exercise the power without obtaining the consent (which of course could not have been achieved) of the unborn beneficiaries. Written by Penelope Reed QC, barrister at 5 Stone Buildings.

This Practice Note considers trusts and property law that may be applicable in family proceedings including invalid or sham trusts and property law issues such as proprietary estoppel and improper transfers. It also looks at the circumstances in which the use of such law may assist a party in family proceedings and the evidence required to put forward property or trusts law arguments. The court may vary a settlement within the meaning of section 24(1)(c) of the Matrimonial Causes Act 1973 (MCA 1973) or Schedule 5, Part 2 to the Civil Partnership Act 2004 (CPA 2004) (see Practice Note: Trusts—variation of a nuptial settlement) or treat trust assets as a financial resource of one of the parties (see: Introduction to trusts within financial proceedings—Trusts as a financial resource). The court may also bring trust assets into account by making findings and/or granting relief based on trusts or property law that go to the substance of relevant trust arrangements. The main trust/property law considerations for the family law practitioner

This Practice Note sets out the circumstances in which a settlement will be regarded as nuptial for the purposes of section 24(1)(c) of the Matrimonial Causes Act 1973 (MCA 1973) or ‘relevant’ for the purposes of Schedule 5, Part 2 to the Civil Partnership Act 2004 (CPA 2004). It considers the powers of the court to vary a nuptial or relevant settlement and the applicable practice and procedure. It also addresses the approach of the court, specific issues in relation to international trusts and relevant case law, including the Supreme Court decision in Prest v Petrodel Resources. A nuptial (marriage) or relevant (civil partnership) settlement is a settlement for the benefit of one or both of the parties or their children, created in contemplation of or during their marriage/civil partnership. The term has been given a wide interpretation by the courts, see What is a nuptial settlement? The court can make a variation of settlement order (a type of property adjustment order) in respect of a nuptial or relevant settlement,

NOTE—to see whether notification thresholds in Tunisia and throughout the world are met, see further: Where to Notify. 1. Have there been any recent developments regarding the Tunisian merger control regime and are any updates/developments expected? Are there any other ‘hot’ merger control issues in Tunisia? Law No. 2015-36 dated 15 September 2015, on the Reorganisation of Competition and Prices, Tunisia, repealed the provisions of Law No. 91-64 dated 29 July 1991 on competition and prices together with its amending and completing texts (Law of 2015). The key changes introduced in the Law of 2015 are as follows: • the amendment of the thresholds for the triggering of notification • the shortening of the notification period • the strengthening of the role of the Competition Council, and • the strengthening of sanctions for breaches of the law The following Governmental Decrees implementing the provisions of the Law of 2015 have also been published: • Governmental Decree No. 2016-780 of 13 June 2016 setting the threshold for the overall turnover from which concentrations are

Construction analysis: By a majority decision, the Scottish Inner House overturned the Outer House’s decision and held that the contractor was liable for the collapse of a tunnel under an NEC2 contract because a defect existed in the works at the time of takeover, namely the contractor’s failure to comply with the Works Information. The potential exclusion of liability for errors in design (Option M) could not rescue the contractor as the defect arose from implementation of the design—not the design itself. The Inner House also considered that the existence of a joint insurance policy did not prevent the employer bringing proceedings because it had claimed for a breach of the contractor’s obligation to rectify defects, which was not covered by insurance.

A profit à prendre that allows its owner to cut turf from another's land.