The End of the 'Morning After Pill' for Trustees

Last week the English Court of Appeal issued two landmark judgments in relation to trusts and the so-called rule in Hastings Bass. Since 1975 this rule has been useful as a 'Morning After Pill', to help trustees set aside transactions which had been entered into and which had unintended tax consequences. As a result of these judgments, the scope of the Morning After Pill is now drastically reduced.