There are people within HMRC who know a great deal about the law of trusts and their taxation. As an example the pages following CG65400 concerning PPR and common intention constructive trusts/ proprietary estoppel. It seems clear from the controversies over what trusts are excluded from TRS that those in HMRC instructing the drafter of Schedule 3A to SI 2017/692
were not among that august cadre. Nonsense in, nonsense out. Taxation or regulatory law that is applicable by reference to well-established legal concepts should be based on a solid jurisprudential understanding of them.