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Trusts and Estates Law and Tax Journal: May 2013

Geoffrey Shindler argues for the abolition of the distinction between charity and philanthropy

Like the poor, with whom it is intimately connected, charity is always with us. Never more so than just now. Last year we had a government statement that there would be a special tax relief for inheritance tax if you gave a specific percentage of your taxable estate to charity. This has been enacted in Finance Act 2012. This year we had the statement that too many people were abusing income tax relief for charitable giving so income tax relief for charitable giving was to be restricted.

Martyn Frost

The Court of Appeal decision in Burgess v Hawes has muddied the waters on capacity, and want of knowledge and approval. Martyn Frost explains why.

The recent judgment from the Court of Appeal in Burgess v Hawes [2013] has some perplexing features for practitioners. The major difficulty is how inconsistent this judgment is when it is compared with so much that has gone before. Is it to be considered as the Court of Appeal breaking new ground, or is it one of those decisions that will gently fade out of awareness because it is so out of line with what is around it? I think that it is very difficult to regard this as a new direction in the approach to capacity and want of knowledge and approval.

David Catchpole and Alexandra Clark analyse Lawie to discern the court’s current approach to mistake and rectification

For many, creating a settlement requires a great deal of thought, not least because it is extremely difficult to reverse the transaction once it has been executed.

Kloosman v Aylen has clarified the court’s approach towards the presumption against double portions. Matthew Hodson examines the case.

The first question to consider when looking at the presumption against double portions is, what is a ‘portion’? Where, by will, a parent leaves a substantial share of their estate to a child and subsequently, while still alive, makes a considerable gift to that same child, there is a rebuttable presumption that the parent intended the gift to be partly or wholly in substitution for the legacy.

Kate Buchanan reviews the key points of the Trusts (Capital and Income) Act 2013

The Trusts (Capital and Income) Act 2013 (the Act) received royal assent on 31 January 2013. The Act gives effect, subject to minor modifications, to the recommendations made in the Law Commission’s 2009 report (no 315), ‘Capital and Income in Trusts: Classification and Apportionment’, which, in turn, built upon an earlier consultation by the Law Commission in 2004 (no 175).

Kate Mundy and Russell Simpson assess the impact of the reforms on the private client practitioner

The controversy surrounding the Jackson reforms continues but the new rules come into force in April 2013 regardless of the ongoing concerns. This article looks at the implications for will, trust and estate dispute practitioners.

Frederic Mege looks at the interpretation of new trust provisions and the implications

New French tax legislation applicable to trusts came into force on 31 July 2011. A decree regarding trustees’ filing requirements was issued on 14 September 2012.

Withers LLP

The result of the Pawson appeal has done little to clarify the criteria for claiming BPR in the case of furnished holiday lettings, as Matthew Woods and Sophie Carter relate

The First-Tier Tribunal set a low threshold for determining whether the activities carried out in respect of a furnished holiday letting business qualified for business property relief. The Upper Tribunal has overturned this decision in a ruling in HMRC v Pawson [2013]. This decision makes it clear that certain activities will be incidental to managing a property as an investment, and therefore insufficient for the property to qualify for business property relief. The facts of the case mean that we still have little clarity as to what activities would be considered sufficient.