Legal Guidance and Research / Experts / Lily Hurley
Lily Hurley#10925

Lily Hurley

Stephenson Harwood
Lily is an Associate in the Private Wealth Team at Stephenson Harwood in Dubai, United Arab Emirates. She joined the firm from Trower Hamlin LLP, then prior to that, Sinclair Gibson LLP in London, where she completed her training before qualifying into the Private Client Team in 2020.  

Lily specialises in advising on all aspects of international wealth structuring and succession and tax planning for high-net worth individuals and families, family offices and trustees.

Practice Area

Panel

  • Contributing Author

Qualified Year

  • 2020

Experience

  • Trower Hamlin LLP (2022 - 2025)
  • Sinclair Gibson LLP (2019 - 2022)
  • Harcus Sinclair LLP (2015 - 2019)

Qualifications

  • Legal Practice Course – Distinction (2017)
  • Graduate Diploma in Law – Distinction (2015)
  • BA Hons History – 1st Class (2014)

Education

  • BPP Law School (2014)
  • University of Exeter (2011)
  • Garden International School
  • The International School of Kuala Lumpur

1 Contributions by Lily Hurley

UK income tax for life tenants of interest in possession trusts: liability, trustee basic rate deductions, mandated income, annuities, expenses, timing and HMRC reporting
PRACTICE NOTES
UK income tax for life tenants of interest in possession trusts: liability, trustee basic rate deductions, mandated income, annuities, expenses, timing and HMRC reporting
In general terms, a life tenant has the right to the income generated by an interest in possession (IIP) trust, and that income is charged to tax at the life tenant’s marginal rates. This applies whether the trustees collect the income and remit it to the life tenant, or where the income is ‘mandated’ so the life tenant is paid it straight from the source. While the ultimate income tax outcome is identical, the steps for reporting the income and settling any tax vary, depending on the route by which the income is received. The source of the beneficiary's income For a life tenant of an IIP trust, the income arises from the trust assets themselves, not from the enforceable right against the trustees to run the trust correctly. Consequently, for income tax, the life tenant’s income sources mirror the trust’s underlying investments as held within the trust fund. The life tenant is entitled only to trust income left after meeting trust management costs and expenses. Put simply, they are due the net income produced by the trust property, being the amount remaining once such charges have been satisfied...
Private Client
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