Revised guidance on the settlements legislation

Shortly after the House of Lords rejected HMRC’s appeal in the case of Jones v Garnett (the 'Arctic Systems' case), we issued interim guidance. This was about the application of the settlements legislation to cases similar to Arctic Systems.

When the interim guidance was issued we promised to issue further, more detailed, guidance in the autumn. This guidance is now available in the Trusts Settlements and Estates Manual at TSEM 4000 onwards.

Helpsheet 270 which accompanies the Trusts etc. pages of the Individual self-assessment return has also been revised. The new version will be available with the 2007-08 Return but, in advance of that, we are making it available as pdf.

Helpsheet 270 Trusts and Settlements – Income treated as the settlor’s (PDF 385K)

Income shifting consultation

You may also wish to see the document 'Income shifting: a consultation on draft legislation' which has been published and is available at HM Treasury.

If you would like to provide a response to the consultation document, please follow the procedures set out in Chapter 2 of the document. The closing date for responses is 28 February 2008.