Q & A


Is This Legal?
Yes – All of our trusts use statutory UK laws and current legislation.
Have Other Clients Done This?
Yes – We have many clients who are successfully using these structures and enjoying the tax efficient benefits. We can put you in touch with some of our clients if you require a reference.
My Accountant Is Sceptical
We always hear this as accountants and professional advisers are generally sceptical of structures they are not familiar with. We are happy to speak or meet with your accountants or advisers, and have found that when we help them understand the structures, they are supportive of them.
It Sounds Too Good To Be True
People have being saying this for almost 25 years, however our legal partners have been successfully implementing these structures since the 90’s.
Why Doesn’t Everyone Do This?
Clifton Trustees refrain from general advertising. New clients come through personal recommendation, therefore the exposure of these structures is limited.
Who Are The Trustees?
For a bespoke arrangement, you choose the trustees, and if you wish we can recommend trustees from various jurisdictions. If you opt for the umbrella arrangement, existing trustees have already being appointed and are based in Belize. They have been carefully selected for their track record of diligent trust management.
Can I Change The Trustees?
You can alter the trustees of a bespoke trust at any time. This is not possible with an umbrella arrangement, however the existing trustees are continuously monitored by our legal partners and can be altered if necessary.
Can I Get Counsel’s Opinion?
Yes – The structures are established only after the professional council opinion has been attained from leading QC’s, some of whom are considered the UK’s foremost authority on the issues of trusts & taxation. Council opinion is available on request.
Are You Guaranteeing The Plan?
In the event of professional error in the implementation of the plan or negligent advice from our legal partners, all fees up to £2.5 million for each case are repayable under a professional indemnity insurance policy. All plan fees and legal fees are covered.
What Do I Do If I Have An Enquiry From HMRC?
Your plan fees cover any enquiries from HMRC in relation to the trust planning, and will be dealt with by our legal partners in-house legal team who are made up of ex-HMRC personnel, solicitors, accountants & tax advisers.
Have HMRC Ever Challenged The Structures?
HMRC have been aware of these structures since 1994, and whilst they have been challenged, they have never been successful.
What If The Law Changes?
Whilst laws do change, it would be the first time in over a decade. As part of the ongoing advisory service, which is covered by the plan fees, the trusts can be adapted to allow for changes in legislation. Not only would changes in UK legislation not affect offshore trusts, but EU law precludes retrospective legislation, which means that the benefits up to that date remain protected.
Who Are Our Legal Partners?
They are a London based firm of specialist tax advisors. Founded in 1994, they have been successfully achieving unrivaled tax solutions to some of the world’s wealthiest families and businesses. More information about our legal partners can be given to you on request.
What Is Clifton Trustees Role?
Clifton Trustees introduce business for the provision of trust planning. Clifton Trustees do not give advice, but have an in depth working knowledge of the technical aspects of the trusts, and can give you generic information about them.
Are transfers to the Pension Trust recognised by HMRC or will I Get Charged An ‘Unauthorised Payments Charge’
No – Transfers are ‘recognised transfers’ in accordance with Section 169 of the Finance Act 2004.
Do I Have To Change The Legal Title On My Property Or Assets?
No –It is not necessary to change legal title on any assets, nor do you have to sell and buy back within the trust. It is a simple paperwork exercise to place assets in trust.
Do I Have To Change The Mortgages?
No.
What Assets Can Be Included In The Asset Trust?
Any assets can be held in the asset trust including residential & commercial property, stocks & shares, cash, bonds, precious stones & metals, antiques, art, wine, cars and overseas holdings.
How Will The Contribution Be Accounted For?
Contributions to a remuneration trust will be accounted for on your Profit & Loss Account as an administrative expense. Your accountant will put an additional entry in the Profit & Loss Account which will read ‘In the (year of assessment / company accounting period), the (trader / company) made a contribution of £XXX to a remuneration trust’.
Who Can Pay Into A Remuneration Trust?
Any business owners can contribute to a remuneration trust, whether trading as a Limited Company, Sole Trader, Partnership or LLP.
Do the structures have to register under DOTAS?
No – firstly, they don’t have to as they are not tax avoidance schemes – they are legal structures. Secondly, only schemes that are not known to HMRC have to register under DOTAS. As they have been known to them since 1994, they are not caught by this legislation.