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Tribunal decides that a bare trust can exist without a trust deed

A taxpayer can be treated as holding money in a bare trust for a relative, even if no trust deed or other formal trust documentation can be produced, the First-tier Tax Tribunal has decided.

The individual concerned was an NHS midwife called Lily Tang, whose parents-in-law lived in Hong Kong. When HMRC learned that there was over $900,000 in an account in her name with Standard Chartered Bank in Singapore, they launched a discovery assessment against Mrs Tang, asking her about the money.

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