Mclaughlin v HMRCC [2012] UKFTT 174 (TC)

Wills & Trusts Law Reports | June 2012 #120

James Albert McLaughlin (taxpayer), who was UK resident, engaged in a marketed planning scheme to avoid tax on a capital gain that he had made on the sale of a business. The scheme involved the acquisition by exchange of shares for overseas registered loan notes issued by two subsidiaries of Skandia UK Ltd (loan notes). The taxpayer then transferred the loan notes to SG Hambros Trust Company Ltd (trustee) to hold on the trusts of a settlor-interested settlement that he had established on 5 February 2003. By a deed of addition made a month later, the trustee added Adrian Gower, who was do...

International Focus: Across the border

In the first of a two-part analysis Hannah Minty and Sally Nash compare the differences in practice between financial provision in England and Wales and in Scotland ‘Scottish courts do not regard themselves as having an overriding jurisdiction in dealing with financial provision upon divorce and any agreement reached between the parties.’ In recent months …
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Periodical Payments: Defining need

Claire Reid considers the varying approach of the courts in assessing periodical payments ‘Charles J stated that the core principle was an application of needs, assessed by reference to the standard of living the parties had enjoyed during the marriage.’ While s3 of the Matrimonial Causes Act 1973 (MCA 1973) grants the power to order …
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AR v AR [2011] EWHC 2717 (Fam)

Wills & Trusts Law Reports | April 2012 #118

The parties separated after a relationship of approximately 25 years and the wife commenced divorce proceedings (decree nisi being pronounced in October 2010). They had one child who was aged 18 (the husband had three children by his first marriage). The husband was aged 66 and the wife 54.

The total wealth was in the region of £21-£24m (all but approximately £1m was in the husband’s name). The source of the husband’s wealth was a business that his father bought shortly after the second world war, which floated in the 1950s and sold in the late 1980s. From his father, ...

BJ v MJ [2011] EWHC 2708 (Fam)

Wills & Trusts Law Reports | April 2012 #118

The husband (H) and the wife (W) were both 65, having married in 1980. There was one child of the marriage (C), aged 25. The former matrimonial home was Green Farm, a substantial property set in 72 acres in Kent. Trust assets fell to be divided following divorce.

In order to mitigate tax on the floatation of his company (ABC), two Jersey trusts were created by H in 1994 (No. 1 Trust and No. 2 Trust) and a company incorporated in the British Virgin Island called Giloch Investments Ltd (Giloch). No. 1 Trust was a discrertionary trust for a class of beneficiaries comprising H, W, C, ...

Forensic Accountancy: Family fortunes

Kathryn Britten and Annette Barker set out the role of the forensic accountant in analysing financial information ‘The days of a forensic accountant being appointed as an expert witness solely to opine on one or both of the parties’ financial positions at the trial stage are long gone.’While the world’s economic landscape is ever-changing, one …
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Financial Provision: Fair shares

In the conclusion to a two-part analysis Huw Miles looks at the courts’ approach to compensation ‘The court must take care not to create a set of rigid stepping stones or apply a formulaic approach that is not set out in the statute.’ Part one: ‘Love, honour and compensate’ In this article we will consider …
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K v L [2011] EWCA Civ 550

Wills & Trusts Law Reports | January/February 2012 #116

On H’s ancillary relief claim, Bodey J awarded him a sum of £5m pursuant to an open offer made by W. W had assets worth approximately £57m and H had assets of approximately £300,000, represented by the former matrimonial home which was transferred to him by W in the course of the divorce. The couple began cohabiting in Israel in 1986, and underwent a ceremony of marriage that was not valid under Israeli law. They married legally in England in 1991, where they have lived ever since. The length of the relationship was 21 years and there are children from the marriage. Substantially t...

Financial Provision: Love, honour and compensate

In the first of a two-part analysis Huw Miles looks at the courts’ approach to compensation If the other party, who has been the beneficiary of the choices made during the marriage, is a high earner with a substantial surplus over what is required to meet both parties needs, then a premium above needs can …
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