The taught modules offered on the LLM programme vary from year to year. Please check the full list of taught modules list for details of modules running in specific academic years. We make every effort to ensure that every module will be offered, but modules are subject to change and cancellation. You are therefore advised to check this site regularly for further updates throughout the year preceding entry to the LLM programme.
TAXATION OF TRUSTS (LAWSG159) Credit value: 15 credits (6 ECTS)
Practice Assessment: 2 practice essays will be set during the module
Assessment method for Masters students: 2-hour unseen written examination
Module Overview
Module summary
This module will consider the taxation of trusts in relation to the three main taxes of Income Tax, Capital Gains Tax and Inheritance Tax. We will examine each of these taxes individually and also consider how they work together to form a coherent system, and how one can affect the other. We will then be able to look at some tax planning methods using these taxes. The UK tax system will be used as an example system, but the principles and theories that we will look at are applicable in any jurisdiction.
Module syllabus
Summary of English trust law
What is equity? What is a trust?
Trust formalities
Types of trust and trust powers
Summary of UK tax law
History and constitutional elements
The UK tax system
Statutory interpretation
C Income taxation of annual payments and the income taxation of trusts
Interest, annuities and other annual payments
The income taxation of trusts
The tripartite nature of trust taxation: Taxing the trustee and taxing the beneficiary
Capital gains tax and trusts
The charge to CGT, computation and reliefs
Bare trusts and settled property
The significance of death for CGT
Inheritance tax and settlements
The charge to IHT, transfers of value, gifts and potentially exempt transfers
Exemptions and reliefs
Gifts with reservation/Preowned assets
Collection, liability to IHT and collection
IHT trusts
Methods to reduce tax liability
Recommended materials
CCH British Tax Legislation 2012/2013
Or LexisNexis Yellow Tax Handbook 2012/2013
Lee Revenue Law Principles and Practice (most recent edition)
Tiley - Revenue Law (6th ed., 2008, Hart Publishing)
Tiley and Collison’s - UK Tax Guide 2012-13 (Oct 2011, LexisNexis)
John Thurston – Estate Planning for the Middle Income Client
Preliminary reading
Lee Revenue Law Principles and Practice
James Penner – The Law of Trusts
Hayton & Marshall – Hayton & Marshall: Commentary and Cases on the Law of Trusts and Equitable Remedies
Alistair Hudson – Understanding Equity and Trusts Law
David Hayton – The Law of Trusts
Other information: N/A
Prizes for this module: There are currently no prizes available for this module.
APPLICATION NOTICES
The application process for the 2013-14 academic session is open.
The deadline for applications to be received has been extended to Monday 1 July 2013
Please refer to the How to apply section for information on the application process.
