Rialas v HMRC [2019] UKFTT 520 (TC)

Wills & Trusts Law Reports | Winter 2019 #177

During the relevant tax years, R was resident and ordinarily resident, but not domiciled, in the United Kingdom. He was a Cypriot national. He held 50% of the issued shares of ACM, a company incorporated in England and Wales. R worked full time in ACM, which carried on a successful business as a fund manager. C held the other 50% of the shares of ACM.

In order to sell his shares in ACM, R decided to acquire C ‘s shares in ACM using a trust and a company resident outside the UK and borrowed funds, also from an offshore company. R established the R Trust, a discretionary fami...

Offshore trusts: A taxing business

A successful taxpayer appeal against HMRC has lessons on how the courts will interpret legislation on the transfer of assets abroad. Remi Aiyela explains ‘Even though Mr Rialas orchestrated the purchase side of the transaction as HMRC claimed, it was stretching the meaning of the word “procure” beyond breaking point to suggest that the fact …
This post is only available to members.