The Inland Revenue has confirmed it will not tax trusts where the settlor retains control over the t...
The Inland Revenue has confirmed it will not tax trusts where the settlor retains control over the trust, even though the Court of Appeal has given it the power to do so. A recent judgment in the case of Melville v Inland Revenue was phrased in such a way as to suggest all powers of access and decision-making to a trust would have to be transferred to a third party once set up by an individual, or be liable to inheritance tax. The Revenue issued Briefing Note 19 last week, designed to outline how it will interpret the Melville decision. This included the sentence: 'The court of app...
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