I have a client whose domicile of origin is Australia. They are currently resident in the UK but not domiciled for IHT purposes. They moved to the UK approximately 4 years ago and the intention will be to return to Australia at some undetermined point in the future.
Some time before moving to the UK a trust was set up in Australia. The trust was created by my client’s Australian accountant with AU$10. This money was then used in setting up a UK property development Company the value of which is now significantly greater than the original AU$10. We are therefore trying to determine the settlor for tax purposes. The Australian accountants are insisting that the settlor is the principal involved at their firm and not our client. I do not see how this can be correct but have any forum members come across this before? To add further complexity, my client and his minor children can potentially benefit from the trust. Client’s children are Australian nationals and continue to live in Australia with their mother, who is divorced from my client.
Alternatively does anyone know of a solicitor/accountant in Australia who would be able to answer this question.