Harriet Brown represented JTC Trust Company in its successful application to have loans made between trusts recognised as giving rise to a constructive trust under the Trusts (Jersey) Law 1981, Article 33. This was an important win for the trustee in question, since the recognition of the constructive trust has far reaching UK tax implications for the trustee and the settlors and beneficiaries of the trusts. It is also an important decision because it clarifies the operation of Article 33 as giving rise to a constructive trust absent the intervention of the court, and the circumstances in which the Article will apply. Indeed, the decision may be an important one for many trustees or UK tax resident beneficiaries and settlors, since it also clarifies the consequences of making beneficial loans in breach of trust (knowingly or unknowingly). As a dual qualified English barrister specialising in tax and a Jersey advocate Harriet was uniquely able to present the trustee’s Jersey law arguments while understanding and explaining the underlying tax consequences, which marked the seriousness of the case.
The judgment can be assessed here
