TSEM1903 - Introduction to trusts: claims about error relating to trust: error in making disposition - 鈥榤istake鈥�
鈥楳istake鈥� concerns a person making a 鈥榲oluntary disposition鈥�, that is, a gift. It can involve someone establishing a trust, or trustees making an appointment or distribution from trust funds. 皇冠体育app making of the disposition may result in a tax liability the person had not anticipated. 皇冠体育app parties involved may seek to overturn the disposition through the High Court by invoking 鈥榤istake鈥�. 皇冠体育app parties may ask whether HM Revenue & Customs wants to be joined in the proceedings.
In some cases the parties alleging 鈥榤istake鈥� 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 鈥榤istake鈥� to Trusts Technical Nottingham for advice.