New queries, issue 4675

Spanish climes

Loan to company owned by trust holding overseas property.

My client’s mother owned a property in Spain through a company owned by a trust.

She is the settlor of the trust which was established in Jersey. The mother provided funds to the trustees who in turn lent the money to a Gibraltan company 100% owned by the trust.

The Gibraltan company then bought an off-plan property near Malaga that the mother used extensively and she also paid the ongoing running costs on behalf of the company. Both my client and the mother are UK-domiciled and resident and have been so since birth. My client was also a beneficiary of this trust.

The trust has been terminated and the trustees transferred ownership of the loan to the Gibraltan company and all the shares in the company to my client who then arranged for...