E E Randall

Loans from offshore trusts

In Cooper v Billingham [2001] STC 1177 it was held that, where non-resident trustees made interest-free loans repayable on demand to a beneficiary, this was the provision of a benefit from the trust within section 97(4), Taxation of Chargeable Gains Act 1992. Accordingly the value of the benefit was a capital payment for the purposes of the capital gains provisions relating to offshore trusts.