.png)
.png)
In 1971 Mr and Mrs S and their daughter F created a UK settlement for F’s two daughters.
They became entitled to the assets at age 18. When they did so on the instruction of their parents the daughter assigned their interest in the estate to two Jersey companies of which their parents were directors.
Mr and Mrs S and F had emigrated to Jersey beforehand for tax purposes.
HMRC assessed the daughters to income tax under TA 1988 s 739 in respect of the income of the Jersey companies.
They appealed on the ground that the interests had been transferred for bona fide commercial reasons i.e. to protect the assets from unsuitable boyfriends etc.
Tax avoidance was not one of the main purposes of the transfer.
The Special Commissioner found it odd that assets would be transferred to keep them...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
