The application of the Hastings-Bass principle in Jersey following the decision in Pitt v Holt
This judgment relates to an application to the Royal Court under the ‘so-called’ Hastings Bass principle brought by two beneficiaries of a sub-fund of the Onorati Settlement (the trust). In brief, two of the beneficiaries sought to set aside a deed of appointment distributing the trust fund of the trust to them without adequate consideration of the tax consequences of the appointment and without professional tax advice, rather than to their mother who was also a beneficiary of the trust (as was originally envisaged). The application was brought on the grounds that the appointment to the two beneficiaries resulted in a breach of the trustee’s fiduciary duty and an unnecessary tax charge for two beneficiaries. Importantly, the trustee failed to take professional advice as to the tax consequences, despite being aware that the appointment would have adverse tax consequences.
While HM Revenue & Customs (HMRC) was notified of the application, it declined to appear but did draw the attention of the Royal Court to the obiter dicta of the Deputy Bailiff in Re the B Life Interest Settlement.
Given that the principle has been the subject of recent and detailed consideration by the English Court of Appeal and the Supreme Court in Pitt v Holt and Futter v Futter, the Royal Court summarised the current position in England and the position in Jersey…
If you are registered and logged in to the site, click on the link below to read the rest of the Ogier briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Ogier
News from The Lawyer
Briefings from Ogier
These two cases are helpful in terms of how the court sees the inter-relationship between the new article 47 test for mistake and the pre-existing provision of the TJL at article 11.
On 24 November 2014 Guernsey’s Legislation Select Committee passed the Companies (Guernsey) Law, 2008 (Amendment) Ordinance, 2014 with immediateeffect.