TSEM1865 - Introduction to trusts: errors in trust deeds (rectification)

Where it is claimed a deed contains an error or omission that means it does not properly reflect the parties' intentions, the parties may seek to have the deed rectified by the High Court. In such cases, they may ask whether HM Revenue & Customs wants to be joined as a party to the proceedings.

In some cases the parties to such a deed may approach us seeking our agreement to ignore the error 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 actual words in the document.

Refer all cases involving errors in trust deeds and/or rectification to HMRC Trusts & Estates Technical Edinburgh for advice.