Q&A: JTC Employer Solutions Trustee Ltd and others v William Garnett and another

10 February 2025 / James Le Gallais , Cécile Perrault

Issue: 4972 / Categories: Comment & Analysis

James Le Gallais and Cécile Perrault discuss the decision in TC Employer Solutions Trustee Ltd and others v William Garnett and another.

In JTC Employer Solutions Trustee Ltd and others v William Garnett and another [2024] EWHC 3128 (ch) the trustees of two employee benefit trusts (EBTs) applied to the High Court seeking the rescission of various deeds of appointment creating sub-trusts within the EBTs for the benefit of individual beneficiaries and their families.

Rescission is a remedy that has the effect of setting aside an otherwise legally binding action with the aim of returning the parties to the position in which they would have been had the action never been taken.

Why is the case important?

The case is the latest in a line of authority in which the courts’ help has been sought in unwinding tax-driven structures that have not worked as intended. In this instance the trustees and the beneficiaries (who did not oppose the order sought) succeeded despite opposition from HMRC.

The case highlights...

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