Offshore messenger - July 2020

Offshore tax liabilities and excuses for non-disclosure

17 July 2020

HMRC are now starting to raise severe Failure To Correct (“FTC”) penalties which can be up to 200% of the tax liability due. In other words, undeclared income of £10,000 can lead to tax and penalties of £13,500 (plus late payment interest).

Anti-Bartlett clauses, where are we now?

17 July 2020

Unlike most aspects of trusts, anti-Bartlett clauses are a relatively recent development. They were developed following the 1980 English law case of Bartlett v Barclays Bank Trust Co Ltd. Broadly speaking, the case determined that where a trust holds a controlling block of shares in a company the trustees have certain duties, including to take action when the company’s affairs are not being conducted properly.

Retaining protected status

17 July 2020

It’s important to review how your life tenant accounts are structured to make sure you don’t lose protected trust status. This article explores protected settlements, problems arising from operating the life tenant’s account and taxing trust income.