B and C v D, E, F and Others

Advocate N. M. C. Santos-Costa for the Representors and for the Seventh Respondent.

On 6 th July, 2020, the Court set aside a number of endowments made by the Representors to the H Foundation ("the Foundation"), but reserved its decision on the primary relief sought, namely the setting aside of the Foundation itself on the grounds of mistake.

In 2009, the First Representor was introduced to the Fifth Respondent, Mr Anton Lane, of Edge Tax Consultancy Limited ("Edge"), a firm of chartered tax advisers and business advisers, through his bankers, Fairbairn Private Bank (now Nedbank Private Wealth) in order to discuss estate planning for the benefit of the family's financial affairs. Various actions in relation to estate planning and mechanisms were discussed and Mr Lane advised of the advantages and availability of a foundation under Jersey law.

Edge had obtained generic advice from Mr Giles Goodfellow QC, at a conference held on 29 th March 2011, on the UK tax consequences of the use of Jersey foundations, a note of which had been prepared by Edge and which was shown to the Representors. Edge then produced a UK Tax Report for the Representors dated 21 st May, 2012, under which it was proposed that:

(i) The Representors would establish the Foundation from which they would be excluded from benefit, but under which they reserved the right to demand repayment of the whole of any capital contributed by them, but with no right to capital growth or income ("the Founders' Rights").