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...
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...
The appellants were trustees of a discretionary settlement settled in 1999. The settlement’s original assets were five £1 ordinary shares in a limited company. In 2000 the settlement received a scrip dividend of preference shares in the company. The preference shares were sold by the trustees two days after their receipt. Their value was £1,382,750. Some nine years later and a few days before the settlement’s ten year anniversary the trustees made a distribution worth £1,260,361 to certain beneficiaries.
The principal issues concerning were:
Mr Gilchrist settled property on trust on 17 May 1993. Under the terms of the trust, he was entitled to a life interest in the trust property. On 4 June 1993, the trustees exercised an overriding power of appointment to appoint 20% of the fund (the appointed fund) out of the main fund, on discretionary trust for the benefit of members of Mr Gilchrist’s family. Mr Gilchrist and his spouse were excluded from any benefit in the discretionary trust. Mr Gilchrist then gifted £44,000 to the trustees. The trustees used the funds to contribute to Whitecroft Limited, in which the trust held...
Jason Pope (Mr Pope) was a geologist who worked for a mining company in Angola. On 8 November 1998 Mr Pope went missing and it is believed he was abducted by Unita rebels. Nothing has been heard of him since that date. Prior to his death, Mr Pope assured his own life in the sum of £100,000 under a life assurance policy dated 15 April 1996 with Equitable. The assured sum was payable to Mr Pope or his personal representatives upon Equitable receiving satisfactory proof of Mr Pope’s death. Following negotiations with Mrs Pope’s mother, acting as his attorney pursuant to a power ...
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James Albert McLaughlin (taxpayer), who was UK resident, engaged in a marketed planning scheme to avoid tax on a capital gain that he had made on the sale of a business. The scheme involved the acquisition by exchange of shares for overseas registered loan notes issued by two subsidiaries of Skandia UK Ltd (loan notes). The taxpayer then transferred the loan notes to SG Hambros Trust Company Ltd (trustee) to hold on the trusts of a settlor-interested settlement that he had established on 5 February 2003. By a deed of addition made a month later, the trustee added Adrian Gower, who was do...