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.