Overseas Chambers of Peter Harris

Maison de la Boucterie
Rue de la Boucterie
Saint Saviour
Jersey, JE2 7ZW

54. French usufruits and their continued misstreatment by HMRC even after the Court of Appeal Judgment in Barclay's Wealth

November 13th 2020

As there is apparently litigation afoot in relation to French Usufruits and s.43(2) ITA 1984, I have prepared a short commentary on the recent unanimous decision of the Court of appeal in Barclay's Wealth in which the scope of s.43(2) can be said to have been restricted to trust and not to outcomes.

HMRC have had to settle my "pré-contentieux" on these issues, so if this helps anyone else ....

This is not the only point against HMRC but it shows I hope that the Inheritance Tax Act 1984 has been overextended to cover foreign dispositions that were not within the scope of its Chapter III on settlements, and that Parliament cannot be construed as having intended these to be taxed as settlements on the wording which it used.