In the matter of the V Trust

This is an application by A (the Representor) to set aside a settlement ("The V Trust") declared on 4 th April 1995 at a time when he was resident in Belgium and into which he transferred assets. His intention was to create a flexible and tax-efficient vehicle to assist him in planning financially for him and his family. He was advised by Mr B Le Hérissier of the Bank of Scotland Trust Company International Limited, which is the same trustee as at present but under a former name, that, and quoting from Mr Le Herissier's letter of 27 th March, 1995:-

"An offshore discretionary trust is a most flexible and tax-efficient vehicle capable of meeting a client's current needs as well as any possible change in his/her current future circumstances."

He says in his affidavit that he had explained to Mr Le Herrissier his full circumstances and in relation to tax-efficiency the letter advised that, and quoting again:-

"Inheritance tax will not apply on any death and that the annual management fees in relation to the trust should be viewed against the tax savings that would be made in particular the elimination of capital gains and inheritance taxes."

The representor was not advised to take his own tax advice and he did not do so. He says this in his affidavit at paragraph 43:-