The appellants, the Bhaur family, entered into an inheritance tax (IHT) agreement in late 2006 with James O’Toole, who operated a tax advisory business named Aston Court.

Marketed as an ‘asset liberation solution’, the scheme saw the assets of the Bhaurs property business placed into a separate company called Safe Investments UK.

In February 2007, the Bhaurs incorporated their business and transferred the beneficial interests to Safe Investments UK. The family were then placed as relevant shareholders, directors and employees.

Safe Investments UK then hived the business down to its newly created wholly-owned BVI subsidiary, referred to as Gooch Investment.