Hi
There is a foundation company incorporated in the Cayman Islands which holds shares in a ‘normal’ Cayman Islands company.
The client (referred to as the ‘founder’) is the sole shareholder of the foundation company but the foundation’s articles of association state its ‘beneficiaries’ are entitled to all income and gains as they arise, and that the shareholder is required to exercise his power for the benefit of the beneficiaries.
Cayman Island foundations have only been around since 2017 and I’ve struggle to find any commentary on how they should be characterised for UK tax purposes.
It seems to be most similar to an interest in possession trust, with the shareholder as the trustee.
The shareholder is UK resident so presumably this would make the foundation a UK resident interest in possession trust with all the resulting tax implications.
Has anyone come across something similar?
Thanks
Matt