swarb.co.uk - law index
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Inheritance Tax - From: 1849 To: 1899
This page lists 2 cases, and was prepared on 08 August 2015.
Attorney General -v- Earl Grey [1898] 1 QB 318
1898
QBD
Inheritance Tax
1 Citers
Attorney General -v- Earl Grey [1898] 2 QB 534
2 Jan 1898
CA
A.L.Smith LJ, Rigby LJ, Vaughan Williams LJ
Inheritance Tax
The court considered the effectiveness of a gift from father to son for estate duty purposes, where the revenue said that the father had reseved an interest in the land to himself. The conveyance to the defendant donee contained the following clause: "the said Earl Grey did convey to the defendant . . all his real estate other than the mansion house and the appurtenances, to the use that the said Earl Grey should thenceforth during his life receive an annual rent-charge of 4000L to be issuing out of the said hereditament, and subject thereto to the use of the defendant in fee simple." This was held to reserve a benefit to the settlor. Rigby LJ: The reservation of the rentcharge and the son's covenant to pay it were "so plain as to require no further notice."
Vaughan Williams LJ said: "the son's covenant to pay the donor's debts was a sufficient reservation of a benefit, but such a benefit was "totally different from the prior estate created by the use in respect of the rentcharge, and I mention this because I am inclined to agree with the appellant that the rentcharge must be treated as something entirely outside the gift."
1 Cites
1 Citers