Last week, experts reported the finalisation of a technical examination of trust protection regulations that has been sent to the HMRC for approval and comments on what was seen as a technical flaw in the legislation, regarding overseas income gains (OIGs). The new rule will affect UK domiciled settlors under the UK Finance (2) Act 2017 and The Finance Act 2018. The intention was to clarify HMRC’s view
This week, HMRC’s technical analysis has been released, who have taken the stance that trust protections cannot currently apply to overseas income gains. No statutory amendments are being foreseen, however HMRC has confirmed its ongoing obligation to oversee trust protection regulations and communicate accordingly with key UK trust shareholders.