Has anyone else had issues with HMRC on whether settling UK assets into offshore charitable trusts pre or post Brexit can benefit from the charitable exemption after Routier?
Leaving aside pre-Brexit transfers and retained EU principles for the moment, and whilst article 56 TFEU is no longer applicable for current capital transfers, is there not a strong table turning argument that, with information exchange, HMRC is now in a position to check whether an offshore charitable trust is in fact charitable? I am not optimistic in succeeding on that point.
Or are we still entrammelled in the reading by the Court of Appeal of s.23 ITA incorporating the ghost of Camille Dreyfus’ charitable trust’s submission to the Income Tax Acts which would render the exemption only available to charitable trusts governed (not regulated, I stress) by a part of the United Kingdom and subject to the jurisdiction of a United Kingdom Court? That would seem to be the way in which this has been headed off by Brexit.