The Royal Court of Guernsey has considered the Guernsey law principles of equitable mistake for the first time since the seminal decision of the UK Supreme Court in Pitt v Holt in 2013. The Gresh v RBC Trust Company case saw the court decide whether to set aside a distribution on the grounds of equitable mistake where that mistake led to adverse UK tax consequences.
The Factual Background
Mr Gresh was a member of a pension plan administered by a Guernsey trustee, who had been advised by independent tax advisers that any lump sum distribution made to him would be tax-free provided that the distri...