The claimants had executed a deed creating a trust of their house, in ignorance of tax changes making such an arrangement liable to Inheritance Tax. The claimant now sought the setting aside of the settlement. Held: The order was made, no consideration having been given. Morgan J  EWHC 790 (Ch),  WLR(D) 179,  … Continue reading Der Merwe v Goldman and Others: ChD 11 Apr 2016
INHERITANCE TAX – deemed transfer on death – deceased’s estate included a farmhouse – whether the Appellant, who had been in occupation of the farmhouse at the date of the death and for some years prior thereto and had incurred expenditure on the farmhouse, had acquired an equitable interest in the farmhouse such as to … Continue reading Hanson v Revenue and Customs: FTTTx 31 Jan 2012
Exempt transfer and relief- Agricultural property relief- farmhouse whether ‘character appropriate’ to 16.29 acres of agricultural land with adjacent agricultural buildings – Yes – farmed by deceased up to the date of his death – Inheritance Tax Act 1984 section 115 (2) relief granted.  UKFTT 351 (TC),  WTLR 1183 Bailii England and Wales … Continue reading Golding and Another v Revenue and Customs (Inheritance Tax : Agricultural Reliefs): FTTTx 18 May 2011
Standing to Claim under A1P1 ECHR The appellants had written employers’ liability insurance policies. They appealed against rejection of their challenge to the 2009 Act which provided that asymptomatic pleural plaques, pleural thickening and asbestosis should constitute actionable harm for the purposes of an action of damages for personal injury. Held: The insurers’ appeals failed. … Continue reading AXA General Insurance Ltd and Others v Lord Advocate and Others: SC 12 Oct 2011
FTTTx INHERITANCE TAX – settled property – scrip dividends – whether income or capital – whether property comprised in the settlement for the purposes of an exit charge before the first 10 year anniversary – Inheritance Tax Act 1984, s68(5)(c) – appeal dismissed  UKFTT 140 (TC),  WTLR 1103,  SFTD 539 Bailii England … Continue reading Meena Seddon Settlement v Revenue and Customs: FTTTx 9 Apr 2015
Executors appealed against rejection of their claim that a gift in the will qualified for relief against Inheritance Tax as being a charitable gift. The Trusts concerned assets in Jersey. Held: The appeal failed: ‘The expression ‘held on trust for charitable purposes’ in section 23(6) requires not only that the charitable purposes be UK law … Continue reading Routier and Another v Revenue and Customs: ChD 18 Sep 2014
UTTTC INHERITANCE TAX – deemed transfer on death – deceased’s estate included a farmhouse – whether the farmhouse was agricultural property within section 115(2) Inheritance Tax Act 1984 – nature of the nexus required between a farmhouse and the agricultural land or pasture etc. in the definition – whether such nexus was occupation and ownership … Continue reading HM Revenue and Customs v Hanson (As Trustee of The William Hanson 1957 Settlement): UTTC 17 May 2013
FTTTx Inheritance Tax; business property relief; liferent; partnership; replacement property; Inheritance Tax Act 1984 sections 49, 105, 106, 107, 110 J Gordon Reid QC J  UKFTT 101 (TC),  SFTD 374,  WTLR 1117,  STI 2028, SC/3212/2007 Bailii England and Wales Inheritance Tax Updated: 11 November 2021; Ref: scu.373640
LT TAX – Inheritance Tax – valuation of dwelling house – comparables- freehold value determined at andpound;230,000 – Inheritance Tax Act 1984, s 160.  EWLands TMA – 284 – 2008 Bailii Inheritance Tax Act 1984 160 England and Wales Inheritance Tax Updated: 11 November 2021; Ref: scu.278628
Share Valuations for IHT SCIT Inheritance Tax; share valuation; convertible unsecured loan stock; family companies; whether option to take shares valid or in doubt; whether options prescribed; effect on valuation of conversion rights; valuation assumptions; percentage deduction for minority and majority shareholdings; Inheritance Tax Act 1984 sections 4, 160, and 168(1); Prescription and Limitation (Scotland) … Continue reading McArthur, Executors of v Revenue and Customs: SCIT 9 Jul 2008
FTTTx Income tax – gift aid – s 25 FA 1990 – gifts to charity under deed of variation of a deceased’s estate – s 142 IHTA 1984 – – whether gift a qualifying donation – whether donors received a benefit in consequence of making the gifts – s 25(2)(e) FA 1990. Berner J  … Continue reading Harris v Revenue and Customs: FTTTx 18 Aug 2010
The claimant sought equal pay with other, male, warehouse operatives who were doing work of equal value but for more money. The Court of Appeal had held that since other men were also employed on the same terms both as to pay and work, her claim failed. Held: The claim was not disbarred in this … Continue reading Pickstone v Freemans Plc: HL 30 Jun 1988
A mother signed a mortgage deed charging her property to H as security for a loan to her son. She claimed the solicitor had been negligent in his advice. The solicitor replied that the claim was out of time. The loss accrued not when demand for payment was made, but when she signed the mortgage … Continue reading Forster v Outred and Co: CA 1981
SCIT Inheritance tax – Death – liability for tax – building society account not notified prior to issue of Clearance – account part of deceased’s estate for inheritance tax purposes – estate distributed by executors before they realised that account part of taxable estate – nature of asset – whether settled property – persons liable … Continue reading Smith and Others v Her Majesty’s Revenue and Customs: SCIT 18 Mar 2009
Account taken of circumstances wihout ambiguity The respondent gave advice on home income plans. The individual claimants had assigned their initial claims to the scheme, but later sought also to have their mortgages in favour of the respondent set aside. Held: Investors having once assigned their causes of action to the ICS, could not later … Continue reading Investors Compensation Scheme Ltd v West Bromwich Building Society: HL 19 Jun 1997
The court considered the valuation of shares in a notional purchase. The company’s articles of association contained a provision that the company might at any time, by extraordinary resolution, resolve that any shareholder, other than a director or a person holding more than 10 per cent of the shares of the company do transfer his … Continue reading Salvesen’s Trustees v Inland Revenue Commissioners: SCS 1930
Sisters,Together always not Discriminated Against (Grand Chamber) The claimants were sisters who had lived together all their lives and owned property jointly. They complained that the Inheritance Tax regime treated them worse than it would a married couple, and was discriminatory. Held: Whilst some protections had been extended to give relief to same sex partnerships, … Continue reading Burden and Burden v The United Kingdom: ECHR 12 Dec 2006
lau_hmrcSCIT SCIT INHERITANCE TAX – DISCLAIMER OF BENEFIT – The Appellant was joint executor and residuary beneficiary of her late husband’s estate – The Appellant paid andpound;1 million to her son who had renounced a legacy of andpound;665,000 under the Will of his step father – The Appellant contended that the payment of andpound;1 million … Continue reading Lau v Her Majesty’s Revenue and Customs: SCIT 18 Mar 2009
Failure to take pension benefits – Inheritance Tax UTTC INHERITANCE TAX – whether transfer of funds to a personal pension plan was a transfer of value – Inheritance Tax Act 1984, s 3(1) and s 10 – whether deceased’s omission to take lifetime pension benefits was to be treated as a disposition and transfer of … Continue reading Revenue and Customs v Representatives of Staveley (Deceased): UTTC 10 Jan 2017
Parents had each left a share of their estate to the bank on trusts for their disabled son. The revenue said that the gifts were caught by and taxable by virtue of sections 5, 49 and 89 of the 1984 Act, the residuary estates of both parents forming part of the son’s estate because section … Continue reading Barclays Bank Trust Company Ltd v Revenue and Customs: CA 14 Jul 2011
Various family settlements had been created. The trustees wished to use the rule in Hastings-Bass to re-open decisions they had made after receiving incorrect advice. Held: The deeds were set aside as void. The Rule in Hastings-Bass derives from trust law, not the law of mistake. The principle does not exist to relieve advisors from … Continue reading Futter and Another v Futter and Others: ChD 11 Mar 2010
Mutual Knowledge admissible to construe contract The parties had entered into a development contract in respect of a site in Wandsworth, under which balancing compensation was to be paid. They disagreed as to its calculation. Persimmon sought rectification to reflect the negotiations. Held: The appeal succeeded. There were difficulties in construing the contract. The contract … Continue reading Chartbrook Ltd v Persimmon Homes Ltd and Others: HL 1 Jul 2009
UTTC Inheritance Tax – Exempt transfers and relief – Agricultural property relief – Farm owned by deceased and let to family farming partnership – Deceased as partner lived in bungalow on the farm until ill-health required him to move to care home – Deceased made occasional visits to bungalow and his possessions remained in it … Continue reading HM Revenue and Customs v Atkinson and Another: UTTC 31 Oct 2011
UTTC Inheritance tax – Exempt transfers and relief – Business property relief Replacement property – Deceased having liferent interest in family estate – Deceased declared to be fee simple proprietor of the estate – Deceased entering into partnership with intended successor – Whether deceased’s interest in partnership, which subsisted immediately before his death, replaced previous … Continue reading HM Revenue and Customs v A M Brander As Exec of The Will of The Late Fourth Earl of Balfour: UTTC 16 Aug 2010
FTTTx (Special Commissioners) Inheritance Tax; administration and collection; executor as personal representative delivering account of heritable property of deceased; whether account incorrect; whether incorrect account fraudulently or negligently delivered; failure to declare that value of property was a provisional estimate; penalty; powers of the Tribunal; mitigation; Inheritance Tax Act 1984 sections 216, 247, 249 and … Continue reading Cairns v Revenue and Customs: FTTTx 30 Mar 2009
Pension Accumulation was taxable The court was asked whether the pension scheme transfer by the late Mrs R F Staveley, and her omission to take income benefits which were then payable, constituted, or are to be treated as constituting, for the purposes of Inheritance Tax 1984 (‘IHTA’) a ‘disposition’ which is a ‘transfer of value’ … Continue reading Revenue and Customs v Parry and Others: CA 16 Oct 2018
FTTTx Inheritance tax – death – estate passing on death – was there settled property derived from deceased’s husband who died in 1969 and estate duty was paid – questions of secret trust and mutual wills – transitional relief from inheritance tax – Inheritance Tax Act 1984 Schedule 6, paragraph 2 Powell J  UKFTT … Continue reading Davies and Another v Revenue and Customs: FTTTx 9 Jun 2009
Executors appealed against a decision that a residual gift in a will was not charitable and that it was therefore subject to Inheritance Tax arguing that the section if construed in this way was an unlawful restriction on the free movement of captal. The revenue contended that the gift by a Jersey resident was to … Continue reading Routier and Another v Revenue and Customs: CA 16 Sep 2016
Right of Recovery of Money Paid under Mistake Kleinwort Benson had made payments to a local authority under swap agreements which were thought to be legally enforceable when made. Subsequently, a decision of the House of Lords, (Hazell v. Hammersmith and Fulham) established that such swap agreements were unlawful. Kleinwort Benson then sought restitution of … Continue reading Kleinwort Benson Ltd v Lincoln City Council etc: HL 29 Jul 1998
FTTTx Inheritance tax – discounted gift trust – valuation of retained interest to income stream – s160 IHTA 1984 – burden of proof – adequacy of comparables – appeal dismissed Malachy Cornwell-Kelly J  UKFTT 745 (TC) Bailii Inheritance Tax Act 1984 160 England and Wales Citing: Cited – Salvesen’s Trustees v Inland Revenue Commissioners … Continue reading Watkins and Another v Revenue and Customs: FTTTx 17 Nov 2011
INHERITANCE TAX – whether the drafting in a will created an interest in possession – yes – was the interest disclaimed – no . .
s.160, Inheritance Tax Act 1984 – – three terraced houses – analysis of comparable sales – valuations determined at pounds 830,000, pounds 900,000 and pounds 950,000 . .
The Society appealed against an order construing a will. The will had made a gift of the maximum allowed before payment of inheritance tax, and then a gift of a house. The Society argued that the house gift should be deducted before calculation of . .
The parties disputed the effect of a term in the will leaving a share calculated according to the current rate of exemption from Inheritance Tax.
Held: ‘the purpose of clause 3 was to bequeath a legacy of the amount that was the maximum amount . .
Whether the pension scheme transfer by the late Mrs Staveley, and her omission to take income benefits which were then payable, constituted, or are to be treated as constituting, for the purposes of the Inheritance Tax 1984 a ‘disposition’ which is . .
INHERITANCE TAX – transfer of funds to personal pension plan while diagnosed with terminal cancer – whether transfer of value – omission to take lifetime benefits – whether disposition and transfer of value – appeal allowed in part . .
Alimentary liferent – Interest in possession – Construction of trust deed . .
A Jersey Charity created under a will of a Jersey resident was transfer to the UK, and reregistered with the UK Charity Commission. The Revenue sought to apply Inheritance Tax.
Held: Jersey was to be considered a third country for the purpose . .
The deceased had owned a site of 2.5 acres on which were built a large farmhouse, and other outbuildings.
Held: The court identified the identify the three separate dimensions to the definition of agricultural property under the Act. The . .
The claimant sought to unravel a settlement she had made as receiver for her late husband, saying that it had been made without consideration of its Inheritance Tax implications. The Revenue said that there was no operative mistake so as to allow . .
INHERITANCE TAX – avoidance – ‘home loan scheme’ – purported sale of house to interest-in-possession trust – mislabelled agreements – validity of sale – s2 Law of Property (Miscellaneous Provisions) Act 1989 – s163 Inheritance Tax Act 1984 . .
The Society appealed dismissal for limitation of its claim against the defendant firm of accountants arising from alleged fraud in approval of a solicitor’s accounts.
Held: The liability did not arise until the Society decided to make . .
The defendant firm of solicitors, acting as executors had sought to arrange matters to minimise Inheritance Tax. A deed of variation was put in place after approval by the court, but the CTO interpreted the deed differently. The executors believed . .
Exemption from IHT for gifts to political parties – section 24 Inheritance Tax Act 1984 – whether breach of European Convention on Human Rights – whether breach of European Union law . .
A settlor had created a discretionary trust in favour of her husband. The Commissioners sought to apply the reservation of benefit provisions.
Held: The settlor’s retained entitlement as a discretionary beneficiary did constitute a reservation . .
The deceased died intestate and with a negative valued personal estate, but with assets in trusts, including a revocable life interest in property. The question was whether his debts could be set off against the trusts interests to reduce them below . .
The deceased and his wife had held their property as tenants in common in equal shares. The Special Commissioner had assessed the interest of the deceased in the property at less than one half of the vacant possession value.
Held: It was not . .
The deceased had inherited grass land from her husband. It had planning permission for development. The personal representatives appealed against a finding that relief was not available as a relevant business property. . .
SCIT INHERITANCE TAX – Deed of Variation – variation purporting to take effect as a gift by the deceased before death – whether within s 142 IHTA 1984 and an exempt transfer under s 17 – no – Revenue . .
Beneficiaries’ gift of excess income was a settled intention and the gifts were exempt from Inheritance Tax. . .
SCIT INHERITANCE TAX – agricultural property relief – freehold house which was owned and occupied by the deceased – agreed that it was a farmhouse – whether it was of a character appropriate to the property – yes . .
LT TAX – Inheritance Tax – agricultural property relief – agricultural value – agricultural property – farmhouses – whether house occupied by ‘lifestyle’ farmer could be farmhouse – held bid of such person could . .
Appeal by HMRC from a decision giving judgment for the Trustees on a preliminary issue in relation to the liability of the Trustees to pay tax under the 1984 Act 1984 in respect of a transfer by Mr Dance of agricultural land into the hands of the . .
SCIT Inheritance Tax; accumulation and maintenance trust; effect of assignation of interest by beneficiary; notice of determination; application to vary refused; Inheritance Tax Act 1984 Section 71, 221, 224 . .
The taxpayer appealed a notice of determination of liability of the estate for Inheritance Tax purposes. He sought to set off an excess of liabilities over assets in the deceased’s own estate against assets held in settlements.
Held: The . .
SCIT Inheritance Tax Act 1984 Section 221; Notice of Determination in relation to heritable property . .
SCIT INHERITANCE TAX – deceased employed in United States – deceased’s employer paid premiums under a group term life insurance scheme under which the life of the deceased was insured for $380,000 – deceased . .
Inheritance Tax Act 1984, s.115(2) – Agricultural relief – ‘Farmhouse’ . .
INHERITANCE TAX – settled property – interest in possession – testator’s will gave directions to trustees permitting two married persons to live in house so long as they so wished – after the testator’s death both moved into the house until the . .
SCIT INHERITANCE TAX -Exempt transfers and relief – Business property – Relevant business property – Shares held by Deceased in two companies – Whether the business carried on by the companies was excluded from . .
The taxpayers appealed against a decision allowing an appeal by the respondents, that shares in a company which owned land from which it ran a residential caravan park, were shares in a business consisting wholly or mainly of making investments, and . .
The executors challenged the assessment to Inheritance tax on the estate. The commissioners claimed that a gift of property into a trust included a sufficient reservation of benefit to disallow it as an exempt transfer.
Held: The scheme was . .
The taxpayers had repeatedly settled shares in the taxpayer company in foreign trusts. The Commissioners sought to use the special legislative regime, imposing a periodic charge to Inheritance Tax on discretionary trusts.
Held: Inheritance Tax . .
The taxpayer, to minimize his tax, put assets into a discretionary trust. The trust included the right for him to give 90 days notice requiring the assets to be transferred to him absolutely. He successfully argued that the assets were no longer . .
The tenant appealed dismissal of his claim for damages. He had suffered serious injury after inhaling carbon monoxide fumes from a defective gas fire. The fire had not been maintained and a fall of soot eventually prevented the escape of fumes.
Inheritance Tax – valuation under s160 Inheritance Tax Act 1984 – maisonette – whether hope value for extension to be taken into account – analysis of comparables – value of appellant’s undivided share determined at pounds 1,603,930 – appeal allowed . .
INHERITANCE TAX – Business Property Relief – s 104 and s 105 of Inheritance Tax Act 1984 – furnished holiday letting business – whether relevant business property – whether business wholly or mainly of making or holding investments – appeal . .
Mr Brown, the deceased, had owned a site on which was built a substantial farmhouse, with six bedrooms, and various outbuildings. The site formed part of a farm and the issue was whether the site was ‘agricultural land or pasture’ within the meaning . .
Tax – Inheritance Tax – valuation under s.160 Inheritance Tax Act 1984 – terraced house – analysis of comparable sales – valuation determined at pounds 260,000 . .
A settlor created a common form discretionary trust save only that it included a right to require, after 90 days, the trustees to revest the settled fund in the settlor. A chargeable transfer was calculated at the reduction in value of his estate . .
The taxpayers had placed shares in the defendant company in foreign trusts.
Held: Under the general law, each brother had made five separate settlements; that s 43 did not reduce the five settlements to one settlement; that there were five . .
The company ran a residential homes park. The users owned the caravans, but the taxpayer owned the land. They claimed exemption on a transfer of shares under section 104(1).
Held: The company was an investment company with section 105, and so . .
The taxpayer owned land upon which he ran a caravan park. Income was generated by pitch fees, and from commissions taken from the sales of caravans from one pitch owner to the next. The Commissioners asserted that the income was to be treated as . .
Lady Ingram had first conveyed properties to her solicitor who on the next day let the properties back to her, and on the day after conveyed the freehold of the properties to her family.
Held: The leases in favour of Lady Ingram, having been . .
The taxpayer was a member of Lloyds. He had to obtain a guarantee of his liabilities from his bank, who in turn took a charge over a freehold reversion which he owned. It was claimed that having been given in charge for business purposes, the . .
INHERITANCE TAX – personal representative distributing assets of estate to beneficiary on basis that beneficiary would discharge IHT liability – appeal on basis that PR no longer has assets of estate – liability of personal representative – appeal . .
Inheritance tax, gifts to charities and freedom of capital . .
The parties sought to rectify a deed of family arrangement varying a will. The variation deed had had several mistakes which in fact increased the sum of Inheritance Tax owed. HMRC refused to accept the rectification deed unless approved by the . .
INHERITANCE TAX – Application for permission to notify appeal to tribunal outside the statutory time limit – Section 223G Inheritance Tax Act 1984 – Permission Refused . .
References:  UKUT 224 (TCC) Links: Bailii Coram: Warren J UTTTC INHERITANCE TAX – deemed transfer on death – deceased’s estate included a farmhouse – whether the farmhouse was agricultural property within section 115(2) Inheritance Tax Act 1984 – nature of the nexus required between a farmhouse and the agricultural land or pasture etc. in … Continue reading HM Revenue and Customs v Hanson (As Trustee of The William Hanson 1957 Settlement); UTTC 17 May 2013
References:  UKUT 300 (TCC),  BTC 1656,  STI 2427,  WTLR 1545,  STC 2666 Links: Bailii Coram: Lord Hodge, Sir Stephen Oliver QC UTTC Inheritance tax – Exempt transfers and relief – Business property relief Replacement property – Deceased having liferent interest in family estate – Deceased declared to be fee simple … Continue reading HM Revenue and Customs v A M Brander As Exec of The Will of The Late Fourth Earl of Balfour; UTTC 16 Aug 2010
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