Non-resident trusts

Article Abstract:

The Statement of Practice (SP) 5/92 of the UK's Inland Revenue provides an explanation of the applicability of capital gains tax to non-resident trusts. Liability to capital gains tax charge for unrealized gains on migration holds for off-shore trusts introduced in Finance Act 1991. Trustees who ceased to be both UK residents and ordinarily residents within the period Apr 6, 1990 and Mar 18, 1991, and have maintained such a status from Apr 5, 1991 onwards, are exempt from capital gains tax liability. Para 9(3), Sch 5, specifies that trusts are subject to the new tax charge if the trust is put up based on direct or indirect provision of income or property. Furthermore, para 9(3) provides specific guidelines on exceptions to SP 5/92 in terms of the Revenue's interpretation of para 9(3).

Trusts and trustees, Trustees, Trusts (Law), Foreign banks, Revenue

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Reconstruction, amalgamation and undertaking

Article Abstract:

The UK Chancery Division has ruled in Swithland Investments Ltd and another v IRC that arrangements to effect company acquisitions by trading shares of an extant company to accommodate its shareholders' requirements did not constitute an amalgamation or reconstruction of either of the companies. The ruling disallowed an exemption from stamp duty for two transactions in which Whitbread PLC offered to acquire Swithland Estates Ltd's licensed premises trade through an exchange of shares of one company for an issue of shares in the other. The Chancery Division ruled that for there to be an amalgamation, there must be evidence of the rolling of two concerns into one. Mere purchases of shares did not bring about amalgamation.

United Kingdom, Cases, Acquisitions and mergers, Stamp-duties, Stamp duties, Tax policy, Whitbread PLC, Great Britain, United Kingdom. Court of Appeal. Criminal Division, Swithland Estates Ltd.

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Tax case review

Article Abstract:

A case decided by the Court of Appeal in 2001 is surveyed. Issues highlighted from the case surveyed include capital gains taxation on agricultural land asset disposal by tenants in common.

Farms, Tenants

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