Guild v Inland Revenue Commissioners: HL 6 May 1992

The will left land for a sports centre to a local authority which no longer existed. If the gift was charitable, the gift would be applied cy pres, but if not it would fail and pass to the family and be subect to Inheritance Tax.
Held: A gift to a local authority of land on which to construct a sports centre, was in its nature charitable, and the gift is exempt therefore from Inheritance Tax.


Lord Keith of Kinkel, Lord Roskill, Lord Griffiths, Lord Jauncey of Tullichettle, Lord Lowry


Gazette 06-May-1992, [1990] UKHL 10, [1992] 2 AC 310, [1992] UKHL 16, [1993] Imm AR 112, [1992] 1 WLR 1052, [1992] 4 All ER 673


Bailii, Bailii


Finance Act 1975 Sch 6 para 10, Income and Corporation Taxes Act 1970 360(3), Recreational Charities Act 1958 1


CitedRussell’s Executor v Balden 1989
. .
CitedInland Revenue Commissioners v McMullen ChD 1978
The Football Association set up a trust to promote football and other sports in schools and universities. The parties disputed whether a valid charitable trust had been created.
Held: The trust was not valid as one for the advancement of . .
CitedInland Revenue Commissioners v McMullen HL 6-Mar-1980
HL Charity – Promotion of sport – Trust created ‘to organise or provide or assist in the organisation and provision of facilities which will enable and encourage pupils of schools and universities in any part of . .
CitedBaddeley (Trustees of the Newtown Trust) v Inland Revenue Commissioners HL 17-Feb-1955
Land had been conveyed to trustees for the moral, social and physical well-being of a community. The court considered whether the trust was charitable in nature, where it was said that it confined the benefits to a class of people who do not . .
CitedIncome Tax Special Commissioners v Pemsel HL 20-Jul-1891
Charitable Purposes used with technical meaning
The House was asked whether, in a taxing statute applying to the whole of the United Kingdom and allowing for deductions from and allowances against the income of land vested in trustees for charitable purposes, the words ‘charitable purposes’ . .
CitedInland Revenue Commissioners v McMullen CA 1979
The Football Association had set up a trust to promote football in universities and schools, claiming this was charitable under the 1958 Act.
Held: The trust was not charitable whether as being for the advancement of education, or in the . .
CitedWeir v Crum-Brown HL 6-Feb-1908
If a bequest in a will to a class of persons is capable of application by the trustees, or failing them, the court, the gift is not void for uncertainty. Lord Macnaghten said: ‘The testator has taken pains to provide competent judges. It is for the . .
CitedCommissioner of Valuation for Northern Ireland v Lurgan Borough Council CANI 1968
The respondent local authority owned an indoor swimming pool. It claimed exemption from rates under section 2 of the 1854 Act saying that it was used exclusively for the purposes of a recreational charity under the Act of 1958.
Held: (By a . .
CitedNational Deposit Friendly Society Trustees v Skegness Urban District Council HL 1959
The House considered the meaning of the phrase ‘the advancement of . . social welfare’ in the 1955 Act. Lord Denning said: ‘A person is commonly said to be engaged in ‘social welfare’ when he is engaged in doing good for others who are in need – in . .
Lists of cited by and citing cases may be incomplete.

Inheritance Tax, Charity, Scotland

Updated: 19 May 2022; Ref: scu.81079