The Defendant owned the freehold. He transferred the property to a S Ltd of which he had control, and which executed a deed declaring that it was held in trust for the defendant. On learning this the majority tenants formed the claimant company to seek to purchase the freehold. S Ltd transferred the property to the defendant for no consideration. The tenant’s company obtained a declaration that the defendant was a purchaser within s11(3). The defendant appealed saying that it had been an exempt disposal within 4(2)(g).
Held: The appeal succeeded. Section 4(2)(g) applied when the estate or interest was held ‘on trust for any person’ at the time of the disposal, and when that disposal was ‘in connection with the appointment of a new trustee or in connection with the discharge of any trustee’. Nothing hindered it being used where the legal estate was transferred to the beneficiary so s to satisfy the trusts on which it was held. ‘In connection with the discharge of any trustee’ were wide enough to cover such a situation, and there was no reason to confine their scope to situations where the trustee of a continuing trust was discharged, whether or not a new trustee was appointed in his place.
Judges:
Henderson J
Citations:
[2016] EWHC 2453 (Ch), [2017] Ch 53, [2016] 3 WLR 1619, [2016] WLR(D) 508
Links:
Statutes:
Jurisdiction:
England and Wales
Landlord and Tenant
Updated: 30 January 2022; Ref: scu.569923