News / 23.10.2017

The European Courts boost the Trust, at last

The EFTA Court did it in the Olsen case in 2014 and now the European Court of Justice has done it again: in granting the rights of establishment and free movement of capital, trusts, the greatest wealth planning tool of all time (apart from foundations, of course), finally get the recognition they deserve, and hopefully the days of ignorance and discrimination of trusts are at an end.

The Case

In September 2017 the European Court of Justice, the highest court in the European Union on matters of European Union law, rendered its judgement regarding the Trustees of the P Panayi Accumulation & Maintenance Settlements v Commissioners for Her Majesty’s Revenue and Customs. The Panayi trustees brought proceedings before the First-Tier Tribunal (Tax Chamber) challenging the compatibility of the taxation and its immediate payment, as provided for by English tax law, with the fundamental freedoms of movement under EU law.

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