H
Habitual Residence
23/03/2009
Habitual residence - is the place or country in which a person has his home. Habitual residence is necessary in order to establish domicile. In dealing with clients who have assets in more than one country or jurisdiction it is necessary to assess their domicile, habitual residence and nationality and the location and type of assets in order to determine which countries succession laws and taxes may apply to the client’s affairs.
Read the detailed description...
Hastings-Bass Principle
03/03/2009
The principle is that a court will not interfere with the decision made in good faith by a trustee, acting within his powers, even though the outcome was not intended unless it can be shown that he would not have made that decision were it not for a mistake: Re Hastings-Bass Deceased [1975] Ch 25, [1974] 2 All ER 193, [1974] 2 WLR 904, [1974] EWCA Civ 13.
Read the detailed description...
Hold-over relief for CGT
04/04/2009
For CGT a gift of a chargeable asset is regarded as a disposal at open market value (except for spouse/civil partner transfers) and the chargeable gain or allowable loss is computed in the usual way.
CGT has historically been reduced in the following ways:
a) by a full or partial exemption;
b) by a deferral of the liability, with the possibility of future liability facing the same taxpayer;
c) by a deferral of the liability and with the possibility of future liability falling on the recipient of the gift, not the donor
Hold-over relief is in the third category as the effect of making a hold-over claim is to reduce the donee’s acquisition cost to that of the donor plus any allowable expenditure. It does not remove the CGT liability it simply defers it.
