Executors of the estate of Linington & anr v Commissioners for HMRC [2023] WTLR 917

Wills & Trusts Law Reports | Autumn 2023 #192

The deceased had made certain inheritance tax planning arrangements which involved the assignment of the reversionary interest of the reversionary beneficiary in MTrust (a 150-year Isle of Man trust) to the deceased, who was then granted an option to become the income beneficiary of the MTrust. Prior to the exercise of the option, the deceased transferred his reversionary interest to the KTrustees in 2010 (prior to the enactment of s74A-C Finance Act 2012).

HMRC issued two notices of determination under s221 of the Inheritance Act 1984 against the executors of th...

Barclays Wealth Trustees (Jersey) Ltd & anr v HMRC [2017] WTLR 917

Wills & Trusts Law Reports | Autumn 2017 #169

This appeal concerned the first periodic charge which fell due on a Jersey-resident discretionary trust established by the settlor, Mr Dreelan (‘the Settlor’) on 21 June 2001 (‘the 2001 Settlement’).

The Settlor transferred £100 to Barclays Wealth Trustees (Jersey) Limited (‘the Trustee’) to hold on trusts in broad discretionary form. The beneficiaries were the Settlor, his spouse and his children then living or born during the trust period. At this date the Settlor was not domiciled in the UK for IHT purposes.

The Trustee lent part of the settled funds to a wholly-owned Je...

Barclays Wealth Trustees (Jersey) Ltd & anr v HMRC [2015] EWHC 2878 (Ch)

Wills & Trusts Law Reports | December 2015 #155

On 21 June 2001 the settlor, who was then non-domiciled in the UK, settled cash derived from a Jersey bank account on the trusts of a Jersey-resident discretionary trust called the Michael Dreelan Trust (MDT). The settlor became deemed domiciled in the UK for inheritance tax purposes from the beginning of the tax year 2003/04. Subsequently, on 4 April 2008, the settlor and others set up another settlement called the Dreelan Brothers Joint Trust (DBJT) and 25,000 ordinary shares in Qserv Limited were transferred from the MDT. These were later sold for cash that was UK situs property. On 2...