Declaration of Trust Recommendation

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Hello 

I have a couple of clients in the adult industry who are wanting to incorporate a limited company but it is an absolute nightmare to get a bank account. Even if companies in the industry get accepted the bank will message them one day and tell them their trade is against their T&Cs and they have 30 days to shift the money to another account.

I have done some research on using a personal account as the companies main account and it looks like the consensus is that it is ok as long as that bank account is ran like a business account and there is a signed declaration of trust in place that says the director understands that account is company funds and the declaration has a note on for the reasons a personal account is being used. (In this case it being that the industry they work in is high risk and it is near impossible to open and maintain a bank account)

Does anyone have a recommendation of a solicitor that could be used to draft a few of these up for my clients?

TIA

Replies (6)

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By Justin Bryant
06th Apr 2021 15:34

This is not complicated and most solicitors should be able to do this. There was that recent case of an oral DoT being effective. See:
https://www.rpc.co.uk/perspectives/tax-take/tang-bare-trust-existed-notw...

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Replying to Justin Bryant:
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By danielspraggon
16th May 2021 00:20

Thanks so much!

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By The Dullard
06th Apr 2021 15:58

DIY's the best bet. Solicitors are generally fairly useless at legal things, in my experience. The world would be a better place if all the useless ones were clubbed to death by a disgruntled client.

Get the client to do it for themselves based on based on your wording (other than the explanation of reasons, which is unnecessary in the document itself, and can be provided in the event of enquiry) and HMRC's kind example in TSEM9520:

https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-...

Don't worry about Justin's link. It's an inevitably irrelevant one, and he's a solicitor who's bound to have a disgruntled client somewhere.

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Replying to The Dullard:
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By danielspraggon
16th May 2021 00:20

Thanks so much!

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By More unearned luck
16th May 2021 15:32

There is a website that you might find useful, if it's still extant:

https://www.accountingweb.co.uk/any-answers/tax-relief-4-escorts

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