I have a client who has a Court Order under Matrimonial Causes Act 1973 to hold property on Trust as follows:
- The first £200,000 for two of his children and net balance (after mortgage) beneficially his.
The title is regd in his sole name. I understand this would be excluded under Sch3A(2) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
However, this has varied since the original Court Order, because my client has paid £60,000 to one of the children. This varies the Trust.
My view would be that this is still excluded under Sch3A as a variation of the Trust, rather than creation.
I cannot see more detailed HMRC guidance on this point