Introduction to trusts: claims about error relating to trust: error in making disposition - ‘mistake’
‘Mistake’ concerns a person making a ‘voluntary disposition’, that is, a gift. It can involve someone establishing a trust, or trustees making an appointment or distribution from trust funds. The making of the disposition may result in a tax liability the person had not anticipated. The parties involved may seek to overturn the disposition through the High Court by invoking ‘mistake’. The parties may ask whether HM Revenue & Customs wants to be joined in the proceedings.
In some cases the parties alleging ‘mistake’ may approach us seeking our agreement to ignore the disposition for tax purposes without going to Court. In the absence of a court order, we would normally adhere to the tax consequences that flow from the disposition.
Refer any cases involving ‘mistake’ to Technical & Valuation Nottingham for advice.