Way back in 1986 a soldier formed a Liechtenstein foundation which now has a value of around £2 million. He had been neither resident nor domiciled in the UK since 1946 a fact that was accepted by the then Inland Revenue when he died in Cyprus in 1993.
His widow 82 is entitled from the founder’s letter of wishes incorporated in the statutes to the income arising for life thereafter the capital goes absolutely to the granddaughter 42. His daughter who would have had a life interest had died previously.
No UK situs investments are held and no inheritance tax return has been made on the basis of the foundation having an absolute not a discretionary interest situation. The life tenant returns the net income paid to her without double tax relief on non-UK dividends.
The life tenant...
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