We are aware that just before Christmas, a company within the Montpelier group acting as a trustee for the Newquay Professional arrangements, sent letters to borrowers asking for the loan to be repaid and if not, threatening action in a Manx Court to obtain a judgement.
If such a judgement is obtained the obvious next step would be to have a UK Court sanction that decision.
It is claimed that failing to repay the loan will result in a judgement being applied for in January 2019.
We are not lawyers and cannot comment on whether the loan and the route via which it was made, are legally valid or not. For the moment we have chosen to deal with the various papers at face value.
Following a discussion with local lawyers, we believe that the threat of immediate action or a Manx Court giving any decision in the next few months is overstated. Further we believe that there are a number of actions that borrowers can, could, should, might, take that can impact the final outcome. We are working with IOM lawyers to give our clients a range of options.
In short, repaying the loan without a clear understanding of the tax effect, the right/obligation of the trust to make a distribution, the destiny of the money, is unwise.
Be very careful and consider carefully the situation.
The trustee has certain obligations toward you enshrined in law. A company within the Montpelier Group may be your tax agent and owe you a duty of care. However the obligation of the trustee and the tax agent are not the same, even if they are owned by the same ultimate parent. If you are taking advice from trustee/agent, make sure that you understand the capacity in which that advice is given and whether that advice might be subject to a potential conflict of interest.
If you have any doubt, take independent advice.
If such a judgement is obtained the obvious next step would be to have a UK Court sanction that decision.
It is claimed that failing to repay the loan will result in a judgement being applied for in January 2019.
We are not lawyers and cannot comment on whether the loan and the route via which it was made, are legally valid or not. For the moment we have chosen to deal with the various papers at face value.
Following a discussion with local lawyers, we believe that the threat of immediate action or a Manx Court giving any decision in the next few months is overstated. Further we believe that there are a number of actions that borrowers can, could, should, might, take that can impact the final outcome. We are working with IOM lawyers to give our clients a range of options.
In short, repaying the loan without a clear understanding of the tax effect, the right/obligation of the trust to make a distribution, the destiny of the money, is unwise.
Be very careful and consider carefully the situation.
The trustee has certain obligations toward you enshrined in law. A company within the Montpelier Group may be your tax agent and owe you a duty of care. However the obligation of the trustee and the tax agent are not the same, even if they are owned by the same ultimate parent. If you are taking advice from trustee/agent, make sure that you understand the capacity in which that advice is given and whether that advice might be subject to a potential conflict of interest.
If you have any doubt, take independent advice.
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