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Trusts and Estates Law and Tax Journal: September 2012

Eleanor Sepanski looks at some issues facing private client practitioners in the months ahead

The summer holidays are over. The Queen’s Diamond Jubilee celebrations and the Olympics, which have provided a lively distraction for much of 2012, are behind us. We move in to autumn/winter 2012 in a climate of continuing economic uncertainty with the impact of recession keenly felt. HMRC and other regulators, such as the Charity Commission, have had to make difficult choices about how to allocate their resources, given the austerity cuts they have had to make, and we are seeing the impact of that. The legal landscape is changing. We now have the reality of ‘Tesco law’ with the Co-operative Bank expanding its legal service to create the largest consumer law business in the country. It will be interesting to see the alternative business structures that continue to emerge in the wake of the Legal Services Act. We have a huge public debate, not always coherent, about tax avoidance/evasion and what is and is not acceptable. These issues form a challenging backdrop to the months ahead.

Jonathan Burchfield and Ann Phillips summarise Lord Hodgson’s recent review of the Charities Act

On 16 July 2012, Lord Hodgson published his much-anticipated 160-page review of the Charities Act 2006, containing no fewer than 113 recommendations, which he submitted to Nick Hurd, the Minister for Civil Society.

Elizabeth Wilson examines the lessons of McCall & anor v HMRCC

The case of McCall & anor v HMRCC [2011] provides useful guidance on IHT business property relief for ‘hybrid’ landowning businesses such as seasonal grazing ‘lets’ where the landowner remains in legal and factual occupation of the land used in the business, but is nevertheless exploiting their rights in the land for income.

The Australian case Grimaldi v Chameleon Mining takes an interesting stance on key points of equity law, as Carrie Rome-Sievers reports

The recent Australian case of Grimaldi v Chameleon Mining NL (No 2) [2012] concerned those in a fiduciary position failing comprehensively to uphold the standards required of them by their duties and position, diverting funds and shares to benefit themselves or their own companies, and, according to the court’s findings, taking secret commissions.

Marilyn McKeever assesses whether a new relief introduced in the Finance Act 2012 will encourage trustees to invest in the UK

Marcus is feeling got at. He is a non-dom and was a banker to boot until he left his investment bank to establish his own business selling organic and fair trade clothing over the internet. Marcus does not own the business directly. Like many UK-resident but non-domiciled individuals he transferred most of his wealth to an offshore structure many years ago.

Katy Shayle considers the EU Savings Directive from a trustee’s perspective

Towards the end of the 1990s, the European Commission accelerated its drive towards achieving information exchange and transparency across Europe and, on 1 July 2005, the European Union Savings Tax Directive (the Directive) came into effect. The Directive provides that European Union (EU) member states and ‘accession states’ (the states) must report certain interest payments made to citizens resident in a member state to that state’s tax authority.

Jo Summers finds Ray & McLaughlin’s Practical Inheritance Tax Planning a useful read

The tenth edition of Ray & McLaughlin’s Practical Inheritance Tax Planning is a helpful addition to any private client adviser’s library.

Kate Symons and Will Hadley give the lowdown on identifying and protecting manorial rights

The area of manorial rights is by no means a straightforward subject for review. For many years such rights have been roundly ignored by most as a historic irrelevance. However, manorial rights have received renewed attention in recent years due, primarily, to the changes introduced by the Land Registration Act 2002, which will result in the end of the status of manorial rights as an ‘overriding interest’ in October 2013.