This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Putting it right

Shared from Tax Insider: Putting it right
By Mark McLaughlin, December 2021

Mark McLaughlin looks at court applications to rectify trust deeds where trusts give rise to unintended tax consequences. 

Trusts can be created for many reasons, including tax planning. Whatever the reason, the tax implications of creating and running a trust need to be considered in advance.  

For example, professional advice is not always obtained; or if it is, the advice might not be complete or correct. Errors or misunderstandings about the tax treatment of transfers or chargeable events could result in unintended additional tax, interest, and penalties. 

An escape? 

However, in some cases it may be possible for the trust deed to be changed, such that the unintended tax consequences do not arise. This remedy (‘rectification’) requires court approval. HM Revenue and Customs might not approve of an application to have the

This is one of our 2242 Premium articles

To see this article in full and unlock access to our complete library of 2242 articles click 'subscribe & unlock' below:
SUBSCRIBE & UNLOCK

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you
Thank you for signing up to hear from us!