Clive Bowring, Juliet Bowring (A vulnerable adult, acting through Clive Bowring) v The Commissioners for HM Revenue and Customs: [2015] UKUT 0550 (TCC)

Upper Tribunal Tax and Chancery decision of Mr Justice Barling on 12 October 2015.

Read the full decision in Clive Bowring and Juliet Bowring (A vulnerable adult, acting through clive Bowring) v The Commissioners for HM Revenue and Customs: [2015] UKUT 0550 (TCC).

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 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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