Request for court order to buy shares

The applicants obtained an order to buy their shares in Estera – a company incorporated under the laws of Jersey. After the order had been made they realised that the purchase by the company – rather than by J Singh or any other person – of the shares would be treated as an income distribution by a UK resident company (ITTOIA 2005 s 368 and s 383) so taxable at the dividend trust rate of 38.1%. Had the shares been bought by J Singh it would have been a capital transaction liable to a trust gain taxable at 20%. 

The applicants had received advice that any immediate tax liability could be avoided if the trust incorporated a new company and transferred the shares to it so that the Jersey trust sold the shares to the company. It sought an order to that effect on the basis...