Representation of Dominion Fiduciary Trust Ltd re The F Trust (Royal Court : Hearing (Civil) : MacRae : Trust) [2025] JRC 242 (2 October 2025)

Representation of Dominion Fiduciary Trust Ltd re The F Trust (Royal Court : Hearing (Civil) : MacRae : Trust) [2025] JRC 242 (2 October 2025)

The statutory test under Article 47E is satisfied: the Settlor and Trustee made a mistake as to the tax consequences of settling the Property into trust, would not have done so but for the mistake, and the mistake is serious enough to justify setting aside the trust and related transactions. Relief is granted to restore the Settlor as absolute beneficial owner, subject to existing secured lending.

Citation
[2025] JRC 242
Parties
Trustee/representor: Dominion Fiduciary Trustees Limited; Settlor/beneficiary: Settlor; Interested Party: His Majesty's Revenue and Customs; Interested Party: His Majesty's Attorney General for Jersey; Nominee: Nominee 1 (Company J); Nominee: Nominee 2 (Company K); Lender: Credit Suisse; Lender: JP Morgan London Branch
Jurisdiction
Jersey
Judgment Date
02 October 2025
Procedural Posture
Representation (trusts) / Final Judgment
Outcome
Relief granted; trust and related dispositions set aside for mistake.
Legal Topics
Mistake in Trust Creation, Inheritance Tax, Capital Gains Tax, Setting Aside Trust Transactions, Trusts (jersey) Law 1984
Trusts Taxation Private International Law Mistake in Trust Creation Inheritance Tax Capital Gains Tax Setting Aside Trust Transactions Trusts (jersey) Law 1984

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Parties

Dominion Fiduciary Trustees Limited

Trustee/representor

Settlor

Settlor/beneficiary

His Majesty's Revenue and Customs

Interested Party

His Majesty's Attorney General for Jersey

Interested Party

Nominee 1 (Company J)

Nominee

Nominee 2 (Company K)

Nominee

Credit Suisse

Lender

JP Morgan London Branch

Lender

Procedural Posture

Representation (trusts) / Final Judgment

Legal Issues

  1. 1 Whether the trust and related dispositions should be set aside for mistake under Article 47E of Trusts (Jersey) Law 1984
  2. 2 Whether the advice given by Hogan Lovells International LLP constituted a mistake as to tax consequences
  3. 3 Whether the statutory test for mistake is satisfied

Ratio Decidendi

The statutory test under Article 47E is satisfied: the Settlor and Trustee made a mistake as to the tax consequences of settling the Property into trust, would not have done so but for the mistake, and the mistake is serious enough to justify setting aside the trust and related transactions. Relief is granted to restore the Settlor as absolute beneficial owner, subject to existing secured lending.

Court Disposition

Relief granted; trust and related dispositions set aside for mistake.

Orders

  • Declaration of trust in respect of H shares by DFNL dated 3 April 2017 and declaration of trust of Property title in favour of Nominee 1 and Nominee 2 dated 5 April 2017 set aside ab initio.
  • Nominee 1 and Nominee 2 have held legal title of the Property on trust for the Settlor absolutely since 5 April 2017.