Conforming interpretation of UK law on exit charge

Mr Panayi was born in Cyprus but moved to the UK as a child in the late 1940s. He lived and worked in the UK after that date. His wife was also Cypriot and moved to the UK on their marriage. In 1992 Mr Panayi established four accumulation and maintenance trusts for the benefit of his children and other members of his family. In 2004 the couple returned to Cyprus but before leaving the UK they resigned as trustees of the settlements. Mr Panayi appointed three new trustees all of whom were resident in Cyprus. The UK corporate trustee remained.

The issue was whether the exit charge on trustees which applied to the value of the trust fund when three of the trustees ceased to be UK-resident was compatible with EU law.

An earlier tribunal had in 2015 referred the...