TC09618 - [2025] UKFTT 01019 (TC)

I have not set out Mx Lunt’s submissions in detail as I largely agree with them.

In summary, Mx Lunt suggested that the starting point for interpreting s 201(1)(d) should be the word ‘settlor’. This word is a defined term that clearly includes corporate entities.

Mx Lunt suggests that the approach put forward by Mr Firth effectively limits the operation of section 201(1)(d) to settlors who are individuals. Mx Lunt argues that if Parliament had intended this, the draftsperson could have expressly referred to “a settlor who is an individual”.

Overall, Mx Lunt submits that the intention behind the section is that where tax is due it is collected. To exclude corporates would mean that companies could not be liable as settlors and that an individual settlor could therefore avoid IHT by placing a corporate body between themselves and the settlement.