The Taxation of Foundations
Author: Robert Venables Q.C.
Publication date: 09/02/2010
About this Work
Are Foundations the new Offshore Trusts?
The Foundations (Jersey) Law 2009 means that foundations can now be established in an English speaking jurisdiction, close to the United Kingdom, of high probity, efficiency and reputation for its financial services.
The United Kingdom tax code has never targeted foundations. While its provisions can by accident apply to foundations, the well-advised can slip through the interstices in the anti-avoidance net.
The author predicts that the foundation has now come of age and will be increasingly used in strategic United Kingdom tax planning, as its many advantages are perceived.
This seminal work will be mandatory reading for all United Kingdom tax advisers who wish to remain abreast of, and even ahead of, current developments.
The taxation of foundations requires a knowledge of the taxation of companies, individuals and settlements. The author, with his wide-ranging experience of thirty years as a tax barrister, almost twenty of them as Queen's Counsel, is peculiarly well qualified to have written this work.
About the Author
Robert Venables QC, MA, LL.M, FTII, TEP, practices from Tax Chambers, 15 Old Square Lincoln's Inn WC2A 3UE, Email firstname.lastname@example.org, telephone 020 7242 2744, Senior Clerk Tony Hall.
His practice includes all aspects of Revenue Law. Specialities include litigation, trusts, employee remuneration, EC, offshore and international and remedying botched planning.
He was Chairman of the Revenue Bar Association of England and Wales 2001-05. He is a Master of the Bench of the Middle Temple (since 1999); a Council Member of the Chartered Institute of Taxation (from 1999) and Chartered Tax Adviser and a Non-Executive Fellow of St Edmund Hall, Oxford (since 1992).
He has written numerous publications on tax over the years, including the following, all published by Key Haven:
- Non-Resident Trusts (9th edition in preparation)
- The Taxation of Trusts Post Finance Act 2009
- Inheritance Tax Planning
- The Family Home (with James Henderson and Richard Vallat)
- Tax Planning and Fundraising for Charities (with James Kessler)
PART A: FUNDAMENTALS
Chapter A.1 What is a Foundation?
Chapter A.2 United Kingdom Tax Planning Through Foundations: An Overview
PART B: INHERITANCE TAX
Chapter B.1 General Observations
Chapter B.2 The Funding of a Foundation
Chapter B.3 Is a Foundation a "Settlement"?
Chapter B.4 A Foundation as a Close Company
Chapter B.5 A Foundation as a Settlement and a Close Company
Chapter B.6 Taxation of Rights Over the Foundation
PART C: CAPITAL GAINS TAX
Chapter C.1 Transfers to Non-United Kingdom Resident Foundations
Chapter C.2 Liability in Respect of Chargeable Gains of Non-UK Resident Foundation
Chapter C.3 Disposals of Assets by Non-UK Resident Foundations
PART D: TAXES ON INCOME
Chapter D.1 Overview of Part D
Chapter D.2 The Liability of the Foundation
Chapter D.3 The Income Tax Settlement Anti-avoidance Provisions
Chapter D.4 The Transfer of Assets Abroad Provisions
Chapter D.5 The Offshore Funds Legislation
Chapter D.6 Other Anti-avoidance Provisions
Chapter D 7 Benefits Conferred by Foundations
PART E: CLOSE COMPANIES
Chapter E.1 Introduction
Chapter E.2 the Basic Definition of "Close Company"
Chapter E.3 Who is a Participator?
PART F: SOME TAX CONCEPTS
Chapter F.1 Scope of this Part
Chapter F.2 The Different Tests of "Settlement"
Chapter F.3 Connected Persons
PART G: THE JERSEY FOUNDATION
Chapter G.1 The Foundations (Jersey) Law 2009
Chapter G.2 Comparison of a Jersey Foundation with a Trust
ANNEX: THE FOUNDATIONS (JERSEY) LAW 2009