The Supreme Court in England has today issued its judgment in
the cases of Pitt v Holt and Futter v Futter.
It has disallowed the use of the Hastings-Bass rule to unwind trustees' mistakes.
The cases considered whether a decision made by a trustee who acted on professional advice could be declared void and set aside. The concept, known as the rule in Hastings-Bass, had come under attack by HMRC in cases where trustees sought to set actions having adverse taxation consequences.
Please click here to view our previous articles on trustees' mistakes.
A full analysis of the Court's decision will be issued shortly.
Originally published May 9, 2013
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