Phizackerley ruling hits all trusts - Skandia

In February the Special Commissioners ruled in favour of HM Revenue & Customs (HMRC) in the test case on the basis the amount of money – approximately £153,000 – Dr Phizackerley owed to the nil-rate band trust set up by his wife, to hold her share of the family home, was originally his. However, while the Phizackerley case focused on the family home, Skandia says the same principles on the circular transfer of money can be applied to any trust arrangement where a beneficiary receives a loan from the trust rather than an outright payment. The firm points out these loans are a common finan...