Trust corporation meaning

This Checklist offers a series of prompts that may help in assessing the tax consequences of an asset sale. It should be read together with Practice Note: Key tax considerations in an asset sale. For further detail on pre-contract enquiries, see also Practice Notes: Capital allowances on property sales—pre-contract enquiries and Commercial Property Standard Enquiries—CPSE (the CPSEs, compiled by members of the London Property Support Lawyers Group and endorsed by the British Property Federation, set out standard questions relevant to a sale of commercial real estate)... Key tax considerations in an asset sale General questions What is the status of the parties: companies, individuals or other entities, for example a partnership, trust or charity? Are there multiple sellers? Are there multiple buyers? Does the seller hold both legal and beneficial ownership of the assets? On actual completion, will the buyer obtain legal and beneficial ownership of the assets? Are the parties connected with one another for tax purposes? If...

In this issue: Employment taxes VAT International Individuals and income tax Taxes management and litigation Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Employment taxes Appeal court rules that loans advanced through a remuneration trust were chargeable as disguised remuneration and that the linked costs were non-deductible (Marlborough DP Limited v HMRC). In Marlborough DP Ltd, the Court of Appeal dismissed the taxpayer’s case and upheld the Upper Tribunal (UT). It found that amounts lent to a director under a remuneration trust fell within the disguised remuneration regime in Part 7A of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003), as they were made in connection with employment. The Court further concluded that the associated payments were not allowable for corporation tax, since they were not incurred wholly and exclusively for the purposes of the company’s trade. See News Analysis: Court of Appeal...

Irwin Mitchell Trust Corp v PW [2024] EWCOP 16 What are the practical implications of this case? A Deputy is a fiduciary and must not place itself in arrangements where duty and self-interest collide. This judgment indicates that principle has been overlooked in practice, fostering a sizeable - and lucrative - habit of appointing linked investment managers or advisers. The ruling is, accordingly, a significant restatement of the law and a clear signal that the court will not accept intentional conflicts of interest. The potential financial fallout for the businesses involved (and not only Irwin Mitchell) could be considerable. What was the background? PW lacked capacity to manage her property and affairs. Irwin Mitchell’s Trust Corporation (IMTC) was appointed as Deputy. After a process assessing other asset managers alongside IMAM, in which PW’s husband participated, IMAM was chosen to oversee her investments. Some time later an application for a statutory Will was made, and during that process the Official Solicitor (OS) identified a potential conflict arising...

In this issue: Employment taxes Companies and corporation tax VAT Budgets and Finance Bills International Real estate tax Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Employment taxes Court of Appeal dismisses ‘discontinuous contract of employment’ while confirming need for causal link to carelessness for extension of assessment timeframe (Mainpay Ltd v HMRC) In Mainpay Ltd v HMRC [2025] EWCA Civ 1290, the Court of Appeal confirmed that extended assessment time limits apply where there is carelessness, and held that sporadic work under one contract is not continuous employment. HMRC was required to demonstrate a sufficient causal connection between taxpayer carelessness and the tax lost to justify using the longer time limits, and in this instance it satisfied that requirement. See News Analysis: Court of Appeal dismisses ‘discontinuous contract of employment’ while confirming need for causal link to carelessness for extension of assessment timeframe...

Forthcoming change: Following the Government’s response to the Ministry of Justice and the Office of the Public Guardian (OPG) consultation Modernising Lasting Powers of Attorney, the Powers of Attorney Bill secured Royal Assent on 18 September 2023, becoming the Powers of Attorney Act 2023 (PAA 2023). PAA 2023 will amend the Mental Capacity Act 2005 (MCA 2005) to deliver a more modern lasting power of attorney (LPA) service. The changes will include: Introducing regulations so those involved in making an LPA can choose to sign the LPA digitally or on paper; Removing the option for attorneys to register an LPA, meaning only the donor will be allowed to register; Introducing regulations setting identification verification requirements for registration applications; Providing for a single route for registration objections to the OPG and widening who may object to include third parties, not only those named in the LPA; Making it the OPG’s responsibility, rather than the donor’s, to notify named persons that an LPA is...

ARCHIVED: This tracker is archived and no longer updated. For an overview of Court of Protection cases from 2025 onwards, see: Court of Protection—table of cases. P, Re (Property & Affairs Deputyship: Jurisdiction) [2024] EWCOP 77 (T2) Court of Protection determines it has jurisdiction to consider whether P’s mother should continue as property and affairs deputy The proceedings related to P, an adult who sustained a brain injury in an accident and had a substantial personal injury claim. His mother had been appointed by the Court of Protection as his property and affairs deputy, and the present decision addressed an application seeking to revoke that appointment. The litigation had been protracted. Earlier, the court permitted ‘closed material’ to be withheld from P’s parents to facilitate capacity assessments; for a summary of that ruling, see here. Despite that step, neither the Official Solicitor nor the court gained clarity about P’s condition or even his location. It was reported that P was now residing in Italy. HHJ Burrows concluded that...

At present, several legal forms suit a charitable body, with the principal options being: a trust an unincorporated association a company limited by guarantee a charitable incorporated organisation Other possibilities include: a company incorporated by Royal Charter a statutory corporation a company limited by shares an industrial and provident association a friendly society community interest company Over time, the newer charitable incorporated organisation (CIO), created by Part 11 of the Charities Act 2006 (CA 2006), is expected to supplant the company limited by guarantee as a preferred route, as it shares that model’s benefits yet falls solely under the Charity Commission (CC). When selecting a structure for the charity, the CC provides a useful guide: Charity types: how to choose a structure. Incorporated v unincorporated It should be understood that incorporated and unincorporated bodies differ in important ways, and recognising these distinctions is essential when choosing an appropriate...

This note offers general guidance on setting up a lifetime discretionary trust. It does not explore the tax implications in any depth. Your specialist Private Client practitioner will be able to deliver tailored advice based on the circumstances of your case. What is a trust? A trust arises when assets are transferred to trustees (who might be individuals or a trust corporation) to hold and manage for the benefit of specified individuals, called the beneficiaries. The parties are: the settlor — the person who transfers the assets to the trustees the trustees — the persons (or a trust company) who receive the assets from the settlor and must look after the trust assets for the benefit of the beneficiaries the beneficiaries — the persons who enjoy the benefit of the trust There are different types of trusts. Three main types of trusts are: bare trusts — typically used to hold assets for minors until they reach...

This Agreement is dated [ insert day ] of [ insert month ] 20 [ insert year ] Parties [ Insert full name and address of the claimant seeking [increased] financial provision from the Estate ] ( Party A ) [ Insert full name(s) and address(es) of the individual personal representative(s), or the company name, number and registered office address of any trust corporation ] ( Party B ) [ Insert full name(s) and address(es) of the other defendants to the claim ] ( Party C ) Each is a ‘Party’, and together they are the ‘Parties’ WHEREAS The Deceased passed away on [ date ], was domiciled in England and Wales, and was survived by [ list of family and dependants ] The Deceased [ left a final will and testament dated [ date ] OR died intestate ] By virtue of [ the will OR the intestacy rules as they apply to the...

This Q&A assumes that the trust corporation is a company incorporated and registered in the UK under the Companies Act 2006 (CA 2006) CA 2006 sets the framework for how a company formed under that Act allots and issues its shares. The exact process varies by the nature of the company proposing the allotment and factors such as whether it has a single share class or several classes already in issue. For further detail, see the sub-topic: Allotment, issue and pre-emption—overview, with particular reference to the Practice Note: Allotment and issue of shares—introductory points. For guidance on the consequences of breaching the CA 2006 provisions on allotting and issuing shares, consult Practice Note: Allotment and issue of shares—penalties...

Amendments to the International Tax Compliance Regulations 2015 (2015 regs), SI 2015/878, introduced by the International Tax Compliance (Amendment) Regulations 2025, SI 2025/740, have brought in a compulsory Automatic Exchange of Information (AEOI) registration obligation for certain trusts treated as ‘specified non-reporting financial institutions’. Under the 2015 regs, SI 2015/878, reg 24(1), a specified non-reporting financial institution is ‘a non-reporting financial institution which is a trust within the meaning of Section VIII(B)(1)(e) of the CRS or paragraph II(D) of Annex II to the FATCA agreement’. Set out below is a concise overview of the components of that definition. Financial institution (IEIM400610) The FATCA and CRS frameworks recognise four common categories of Financial Institution: custodial institution depository institution investment entity specified insurance company Where a private trust satisfies any Financial Institution definition, it will most commonly be treated as an Investment Entity...

A charity may hold legal title to land or property in its own name only if it is a charitable incorporated organisation or a charitable company. Land Registry Guidance Practical Guidance 14: Charities explains that the term “trust corporation” includes: the Public Trustee (who is not permitted to accept trusts for charitable purposes); a corporation appointed by the court, in any particular instance, to act as trustee; and a corporation entitled, under rules made pursuant to section 4(3) of the Public Trustee Act 1906, to act as a custodian trustee. See section 205(1)(xxix) of the Law of Property Act 1925 and section 17(1)(xxx) of the Settled Land Act 1925, and also section 3 of the Law of Property (Amendment) Act 1926...