»Ê¹ÚÌåÓýapp

From 01/04/02 A holds 1,000 shares in company Y in her own name. A does not return the dividends for income tax purposes - instead her adult son B returns them for all years.

You need to consider what evidence there is that the beneficial ownership of the shares differs from the legal ownership. »Ê¹ÚÌåÓýapp fact that the son returned the income is not in itself evidence of a beneficial interest.

In response to a compliance check, A submits a declaration of trust dated 01/06/10. In it A states ’I hold the 1,000 shares in company X for my son B absolutely�.

Where the settlor makes a declaration that he or she holds the shares on trust, the transfer is effective at that date. [Milroy v Lord (1862) 4 De G.F. & G. 264: ER 45 Ch 1185.]

Any income from the shares after the 01/06/10 is taxable on B. »Ê¹ÚÌåÓýappre is no evidence that a written or oral that a trust existed before that date. So the dividends are taxable on A before that date.