Tax Case - A Lucky Escape

A SETTLOR MADE five identical discretionary trusts on five different dates. In relation to the ten-yearly charges to inheritance tax on the trusts it was held that they were separate settlements and that the 'associated operations' provisions could not apply to treat them all as one settlement.

The background

First a brief apology is due. This case was reported in Simon's Tax Cases in June last year and on two separate occasions offers were accepted in the editorial office for the case to be analysed in articles for the benefit of readers. In the event neither offer produced any material for publication hence the very late report which readers now have. It is believed that the case is going to the Court of Appeal so that we may not yet have heard the last of it.

In 1984 a settlor set up five identical...