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Concerning Trust law and corporations

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Concerning Trust law and corporations

Postby giompizz » Wed Oct 04, 2017 9:47 am

Hi guys, new here, was just wondering if a corporation can act as the settlor of a trust under UK law, and if a bank can be the beneficiary of that trust?
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Re: Concerning Trust law and corporations

Postby dls » Wed Oct 04, 2017 11:10 am

Why should it not be?

Note that this sounds like a scheme for trying to save tax. Whether any such scheme would have what tax effects is a different question.
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Re: Concerning Trust law and corporations

Postby giompizz » Wed Oct 04, 2017 3:04 pm

thanks for your help!
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Re: Concerning Trust law and corporations

Postby giompizz » Wed Oct 04, 2017 3:15 pm

Actually, would it be possible for you to give me a brief explanation of the tax effects of such a scheme?
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Re: Concerning Trust law and corporations

Postby atticus » Wed Oct 04, 2017 5:17 pm

I doubt it.

If you are contemplating entering into a tax saving scheme then take professional advice.
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Re: Concerning Trust law and corporations

Postby dls » Thu Oct 05, 2017 11:51 am

The main tax effect is that HMRC would be all over it. Such ascheme might take any one of a thousand particular forms, each with a possible different effect on tax.

If there is enough tax to save there is enough to get proper advice, and a need for it.
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Re: Concerning Trust law and corporations

Postby giompizz » Thu Oct 05, 2017 2:09 pm

Would a Special Purpose Vehicle/Entity be a possible way of carrying out this kind of scheme?

Is there any case law that shows a corporation acting as a settlor with another corporate beneficiary?

Thanks for all your help!
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Re: Concerning Trust law and corporations

Postby dls » Fri Oct 06, 2017 5:25 am

You are clearly asking these questions with a specific situation in mind. Your specific situation might be any one of a huge variety.

There is no restriction in general law on a legal entity of whatever nature creating a trust in favour of another legal entity.

If you want examples look at companies creating pension funds.

A 'special purpose vehicle' has no particular meaning in law. It just identifies a company set up for a particular limited purpose. It need not be otherwise different from any other company.
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Re: Concerning Trust law and corporations

Postby giompizz » Fri Oct 06, 2017 4:36 pm

Thanks again, made my steps clearer!
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