Overseas trust

We act on behalf of a retired specialist consultant. Many years ago a non-domiciled non-UK resident friend of his set up an overseas trust with overseas funds. Our client and his adult children are the beneficiaries. The trust is not settlor interested and is discretionary in nature. The beneficiaries are all UK domiciled and UK resident.

The trust invested in various offshore investments that have been successful generating income and capital gains. We understand that the trustees may have made a loan to one of the beneficiaries at some point but other than that all income and capital have been accumulated within the trust.

The investments have now been sold and the intention is to distribute the proceeds to the beneficiaries and wind up the trust.

Do readers consider that the transfer of assets abroad legislation under the benefits section (ITA 2007 s 731) should...