The transfer of assets abroad anti-avoidance provisions did not apply in the circumstances to dividends from a UK company to an offshore trust created by a UK resident (and ordinarily resident) but Cyprus domiciled settlor, trustee, and discretionary beneficiary. 
 
During the tax years 2005/06 and 2006/07, the appellant (a Cyprus national) was resident and ordinarily resident, but not domiciled, in the UK. He was a 50% shareholder of a UK company (A), which provided investment advice. 
 
Relations between the appellant and A’s other 50% shareholder (Mr C) deteriorated. The appellant did not have sufficient funds to buy Mr C’s shares personally. He therefore arranged for a new company (F) to be formed in the British Virgin Islands to borrow $15 million to buy Mr C’s shares, and for F to be 100% owned by a family trust. 
 
A family discretionary trust (R) was formed