Hello, I am Keith, one of the experts on Just Answer, and pleased to be bale to help you with your question.
The UK has no Gifts Tax regime so gifts are outside the scope of UK taxation. There is no personal taxation in the Bahamas. Thus the scheme you propose is in theory tax free, but should HMRC become aware of what is going on they will view the transactions with a rather jaundiced eye and regard the arrangements as tax avoidance regarding the settlement.
If substantial sums are involved here I would tend to run this across a tax accountant with an extensive international practice.
I do hope that I have been able to shed some light on the position.
Delighted to have been of assistance.
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Then it is a gift and the UK has no gifts tax regime so no tax is due. However, do not forget the possible Potential Exempt Transaction (PET) liability should the donor die within seven years of the gift. I have to go out now, but will be back before lunch time and expand on my answer then, sorry..
Yes, apologies. A PET is created in the donor's Inheritance Tax (IHT) affairs. PETs run off at a taper over seven years and in the event of the donor'd decease within this period are added back to their estate for IHT purposes. PETs are the first to suffer IHT and if the estate is insufficient to meet the tax on the PET the liability cascades down to the beneficiary for immediate payment.