New anti-avoidance rules for foreign domiciliaries and non-UK
resident trusts were introduced from April 2017. Those rules included
protections to help settlors of offshore trusts affected by the deemed domicile
changes. Noting HMRC’s view that offshore income gains (profits on the disposal
of offshore funds which do not have reporting status) are not included in those
protections, the
CIOT suggests that tax advisers may want to consider whether to amend
returns already submitted on the basis that the trust protections apply, or
whether they feel that HMRC’s view is incorrect. The CIOT understands that a
group of affected taxpayers and their advisers are forming an action group with
a view to taking a test case on this issue to the First-tier Tribunal.
New anti-avoidance rules for foreign domiciliaries and non-UK
resident trusts were introduced from April 2017. Those rules included
protections to help settlors of offshore trusts affected by the deemed domicile
changes. Noting HMRC’s view that offshore income gains (profits on the disposal
of offshore funds which do not have reporting status) are not included in those
protections, the
CIOT suggests that tax advisers may want to consider whether to amend
returns already submitted on the basis that the trust protections apply, or
whether they feel that HMRC’s view is incorrect. The CIOT understands that a
group of affected taxpayers and their advisers are forming an action group with
a view to taking a test case on this issue to the First-tier Tribunal.
