High Court permits rescission of sub-trust appointments saving IHT for EBTs caught by income tax avoidance rules.
In JTC Employer Solutions Trustee Ltd and others v W Garnett and others[2024] EWHC 3128 (Ch) (9 December 2024) the High Court (HC) permitted rescission in relation to Employee Benefit Trust appointments to sub-trusts with the result that IHT in the region of £7m was avoided. The HC decided that the mistake in creating sub-trusts was sufficiently grave to render it unconscionable to leave the mistaken dispositions uncorrected.
JTC Employer Solutions Trustee Ltd acted as trustee for two trusts the 2005 Henderson Family Benefit Trust (HFBT) and the 2011 Henderson Group plc Employer Financed Retirement Scheme (EFRBS). The trusts were designed to provide benefits to employees former employees and their families.
The defendants Mr Garnett and Mr Sekhon were representative beneficiaries of the trusts...
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High Court permits rescission of sub-trust appointments saving IHT for EBTs caught by income tax avoidance rules.
In JTC Employer Solutions Trustee Ltd and others v W Garnett and others[2024] EWHC 3128 (Ch) (9 December 2024) the High Court (HC) permitted rescission in relation to Employee Benefit Trust appointments to sub-trusts with the result that IHT in the region of £7m was avoided. The HC decided that the mistake in creating sub-trusts was sufficiently grave to render it unconscionable to leave the mistaken dispositions uncorrected.
JTC Employer Solutions Trustee Ltd acted as trustee for two trusts the 2005 Henderson Family Benefit Trust (HFBT) and the 2011 Henderson Group plc Employer Financed Retirement Scheme (EFRBS). The trusts were designed to provide benefits to employees former employees and their families.
The defendants Mr Garnett and Mr Sekhon were representative beneficiaries of the trusts...
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