Bowring v Revenue & Customs [2015] UKUT 550 (TCC) (12 October 2015)
Transfer of trust assets by trustee of non-resident settlement to trustees of new
UK-resident settlement – asset transfer linked with trustee borrowing - capital
distributions subsequently made by latter settlement to beneficiaries who are
also beneficiaries of first settlement – common ground that the realised trust
gains of the first settlement were not transferred to the new settlement
pursuant to section 90 Taxation of Chargeable Gains Act 1992 (“TCGA”) as
a result of the effect of subsection 90(5)(a) TCGA - “Flip Flop Mark II”
scheme – whether the capital payments could be treated as “received from”
both the trustee of the earlier settlement indirectly and the trustees of the new
settlement within the meaning and for the purposes of subsections 87(4) and
97(5)(a) TCGA – no – the FTT ( [2013] UKFTT 366 (TC) ) erred in law in so holding – whether, on the
undisputed findings of fact of the FTT, the capital payments were “received
from” the trustee of the first settlement indirectly – no - appeal allowed and
decision of the FTT set aside.
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