Continue reading "Trustees: Duty to act reasonably"
Eric Lionel Thomas (the settlor) settled a trust (the 1961 settlement) by deed dated 27 June 1961 (the 1961 deed). The principal asset of the 1961 settlement was a controlling interest in NWN Media (the company), a family owned newspaper publishing company that published local newspapers in Wales, Chester, Shropshire and Herefordshire. The trustees of the 1961 settlement (the trustees) were given powers by the 1961 deed to sell shares with the consent of the settlor during his lifetime and thereafter at their discretion. In addition, the 1961 deed gave the trustees the powers of appropri...
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...
Continue reading "Trustees: Bare necessities"