188ÌåÓý

‘Mistake� concerns a person making a ‘voluntary disposition�, that is, a gift. It can involve someone establishing a trust, or trustees making an appointment or distribution from trust funds. The making of the disposition may result in a tax liability the person had not anticipated. The parties involved may seek to overturn the disposition through the High Court by invoking ‘mistake�. The parties may ask whether HM Revenue & Customs wants to be joined in the proceedings.

In some cases the parties alleging ‘mistake� may approach us seeking our agreement to ignore the disposition for tax purposes without going to Court. In the absence of a court order, we would normally adhere to the tax consequences that flow from the disposition.

Refer any cases involving ‘mistake� to Trusts Technical Nottingham for advice.