Marlborough DP Ltd v Commissioners for HMRC [2021] WTLR 1329
Wills & Trusts Law Reports | Winter 2021 #185Marlborough DP Ltd (MDPL) operated a dental practice, through which a Dr Thomas, its director and sole shareholder, provided dental services. It had instituted a ‘remuneration trust’ (RT), which it had stated to be for the benefit of persons who had provided or might in the future provide services, custom or products to MDPL. MDPL made ‘contributions’ to the RT which were said to reflect ‘part of the economic cost to [MDPL] of earning its profits’. MDPL then deducted its contributions to the RT as business expenses in computing its profits for accounting purposes, and claimed deductions ...
Dukeries Healthcare Ltd v Bay Trust International Ltd & ors [2021] WTLR 809
Wills & Trusts Law Reports | Autumn 2021 #184The claims concerned various tax avoidance schemes that had been established as ‘Remuneration Trusts’ for the claimants by Baxendale Walker LLP. The claimants were a successful businessman, Mr Levack, and various businesses of which he was a director and/or shareholder. In each case, one of the claimants was the ‘founder’ of the relevant trust. The defendants were various corporate entities having had a role in the trusts, together with HMRC.
The claimants maintained that the Remuneration Trusts had been entered into on the basis that they would offer various tax benefits, and wou...