Malcolm Finney looks at anti-avoidance provisions for settlor-interested trusts.
HMRC have for many years held the view that individual taxpayers use trusts to avoid tax. For some taxpayers this may be true; but it is by no means true of all taxpayers.
Yet, whether there is a tax motive or not on the part of the taxpayer in utilising a trust as part of their tax planning, a number of anti-avoidance provisions can still ‘bite’ to reduce any tax advantage.
Is that ‘settled’?
The term ‘trust’ is used in this article although the relevant legislation uses the term ‘settlement’. A settlement (trust) “includes any disposition, trust… arrangement…” (ITTOIA 2005, s 620), which must in turn involve the
