Readers’ forum: Trust nightmare

In February 2010 my client bought into an established excluded property trust situated in the Isle of Man to mitigate his liability to UK inheritance tax. The assets of the trust were held as cash in an Isle of Man bank account. He died in September 2010 and since 2017 we have been in dispute with HMRC about whether inheritance tax is due on the sum involved.

My case is very similar to that of Salinger (TC5407) which was won by the taxpayer. I believe that HMRC appealed but the appeal was not heard because the Salinger family conceded rather than face further legal costs if HMRC ultimately won.

HMRC has issued notices of determination in our case and we understand in other cases as well. Those determinations are under appeal. HMRC’s statement of case centres on whether transfers of value...