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England and Wales High Court (Chancery Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> Alway Sheet Metal Ltd v Capco Trust Jersey Ltd [2014] EWHC 2394 (Ch) (22 May 2014) URL: http://www.bailii.org/ew/cases/EWHC/Ch/2014/2394.html Cite as: [2014] EWHC 2394 (Ch) |
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CHANCERY DIVISION
7 Rolls Building, Fetter Lane London EC4A 1NL |
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B e f o r e :
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ALWAY SHEET METAL LIMITED | Claimant | |
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CAPCO TRUST JERSEY LIMITED | Defendant |
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The Defendant did not appear and was not represented
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101 Finsbury Pavement London EC2A 1ER
Tel No: 020 7421 6131 Fax No: 020 7421 6134
Web: www.merrillcorp.com/mls Email: [email protected]
(Official Shorthand Writers to the Court)
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Crown Copyright ©
"Whereas the founder [Alway Sheet Metal Limited] intends to provide the sum of One Hundred Pounds and other property to the Original Trustees to be held for the benefit of the employees of the Founder and other persons in the manner hereinafter appearing."
"Subject to Clause 12 hereof the Trustees shall hold the Trust Fund and the income thereof UPON TRUST for all or any one or more exclusively of the others or other of the Beneficiaries in such shares and with such trusts and subject to such powers and provisions as the Trustees shall in their absolute discretion during the Trust Period by any deed or deeds revocable or irrevocable appoint."
"...the present, past and future employees from time to time of the Founder and the wives husbands widows widowers children step-children and remoter issue of such employees and the spouses and former spouses (whether or not remarried) of such children and remoter issue..."
"The Parties by mutual consent (as is evidenced by their respective execution of this Deed) hereby declare that the Definitive Trust Deed is rectified and (if and to the extent necessary) and amended as follows, as on and from the date of the Definitive Trust Deed."
"1. Notwithstanding anything express or implied elsewhere in this Deed, the Trustee shall not have power to pay or apply any of the trust estate in the provision of any 'emolument', as that term is defined in the Income and Corporation Taxes Act 1988.
2. Notwithstanding anything express or implied elsewhere in this Deed, the Trustee shall not have power to pay or apply any of the trust estate in such manner as would constitute as 'potential emoluments' any sums contributed by the Founder to the trust hereof and the term 'potential emoluments' shall have the meaning set out in Section 43 Finance Act 1989.
3. The class of beneficiaries of the trust hereof shall not include, as from 1 November 2002, any employee or former employee of the Founder (but shall continue to include spouses, dependents and remoter descendants of such descriptions of person)."
"1. The claimant is the founder of a remuneration trust entered into with the defendant dated 12 May 1998.
2. On 5 October 2005 the claimant and the defendant executed the deed of amendment and rectification. The deed was agreed to and signed by both parties.
[Paragraph 3 deals with a subsequent deed of amendment which is not relevant to this part of the application.]
4. HMRC seeks to challenge the legal status of the deed of amendment and rectification at a tribunal hearing.
5. The claimant seeks a declaration that the trust deed dated 12 May 1998 was amended as at the original date of that deed and that it is valid."
Both the claimant and the defendant are ad idem as to the necessity and legal effect of the original trust deed and each deed of amendment."
"In the ordinary use of language, the whole of the funds were potential emoluments. They could be used to pay emoluments."