Claim proceeds

Issues arose concerning the beneficial ownership of assets held in trust. One related to assets settled by the shareholder (the third claimant) in a Nigerian company formed by the deceased in 1984 and the other to assets settled in trusts in 2002.

HMRC said that the 1984 trust was a sham with the deceased retaining beneficial ownership of the assets. They said that the 2002 trusts had been settled by the deceased rather than the third claimant and charged inheritance tax on that basis.

The trustees applied for declaratory relief that the beneficial owner of the assets in the 2002 trusts was the third claimant.

HMRC applied for an order striking out the trustees' claim.

The High Court judge ruled that the trustees' claim should be allowed to continue. The facts in this case favoured allowing the High Court proceedings to continue. All relevant parties were already parties...