The onward gift rules can have the effect of taxing a distribution from an offshore trust if that distribution has been made to a non-UK resident person (who would not be taxable) and that non-UK recipient passes on the distribution to a UK resident (who would be taxable had he received it directly from the trust). The legislation has been drafted in such a way that it can be incredibly complicated to unpick but once deciphered can deliver some interesting results.
If you are not a subscriber, subscribe now to read this content.
The onward gift rules can have the effect of taxing a distribution from an offshore trust if that distribution has been made to a non-UK resident person (who would not be taxable) and that non-UK recipient passes on the distribution to a UK resident (who would be taxable had he received it directly from the trust). The legislation has been drafted in such a way that it can be incredibly complicated to unpick but once deciphered can deliver some interesting results.
If you are not a subscriber, subscribe now to read this content.
.tmb-editorspic.jpg?sfvrsn=df04ab27_1)
