Private client briefing for November 2017

Dreelan: transfers of property between excluded property settlements

Barclays Wealth Trustees (Jersey) Ltd and M Deelan v HMRC [2017] EWCA Civ 1512 involves an appeal against a determination of a liability for IHT arising in relation to the ten-year charge applicable to trusts.

The case concerns transfers between two trusts which were both settled by a non-UK domiciled individual Mr Dreelan (D). In 2001 D settled funds into a Jersey discretionary settlement (the ‘2001 settlement’). In 2003 D transferred ordinary shares in a UK-resident company Qserv Ltd (Qserv) to the trustees of the 2001 settlement. Shortly after in 2003 D became UK deemed-domiciled for IHT purposes. In 2008 D and his brothers settled a new trust the Dreelan Brothers Joint Trust (the...