• The End of the "Rule in Hastings-Bass"?
  • April 1, 2011 | Author: M. Scott Kerwin
  • Law Firm: Borden Ladner Gervais LLP - Vancouver Office
  • In a decision that will be significant for offshore tax planning and trust matters, the England and Wales Court of Appeal has effectively reversed the so-called “Rule in Hastings-Bass” that has developed over the past 20 years, mostly in offshore tax havens like Jersey and the Isle of Man. In Pitt v. Holt, 2011 EWCA Civ 197, the Court of Appeal held that the law took “a seriously wrong turn” 20 years ago, and that Hastings-Bass does not support the “Rule” that has been so often invoked by trustees to unscramble transactions that had unintended tax consequences.