Lord Advocate v Sprot’s Trustees: HL 15 May 1902

Where money was held by trustees under a direction to apply it in the purchase of lands in Scotland or England to be entailed upon a certain series of heirs, held that this money was not ‘entailed estate’ within the meaning of section 23 of the Finance Act 1894, and was consequently not liable to estate duty and settlement estate duty under sub-section 16 of that section.
Judgment of the First Division affirmed, but upon a different ground.
Opinions per Lord Macnaghten, Lord Brampton, Lord Robertson, and Lord Lindley (differing from the judgment of the First Division) that money held in trust for the purchase of lands in Scotland to be entailed under the law of Scotland is ‘entailed estate’ within the meaning of section 23 of the Finance Act 1894, and is consequently liable to estate duty and settlement estate duty under sub-section (16) of that section.
Opinion per Lord Shand contra.

Judges:

Lord Chancellor (Halsbury), and Lords Macnaghten, Shand, Brampton, Robertson, and Lindley

Citations:

[1902] UKHL 617, 39 SLR 617

Links:

Bailii

Jurisdiction:

Scotland

Inheritance Tax

Updated: 23 March 2022; Ref: scu.630796