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 part of his estate, since that right was an asset in his estate. The revenue appealed. The sections defined his estate as ‘the aggregate of all property to which he is beneficially entitled’, and section 272 included rights and interests of any description. The right was valuable, and thus substantially reduced the value transferred into the trust fund, and therefore the tax payable on that transfer.
Judges:
Lord Justice Peter Gibson, Lady Justice Arden, Lord Justice Kay
Citations:
Gazette 27-Sep-2001, Times 09-Oct-2001, [2001] EWCA Civ 1247, (2001-02) 4 ITELR 231, [2001] STC 1271, [2001] NPC 132, 74 TC 372, [2001] STI 1106, [2001] WTLR 887, [2002] 1 WLR 407, [2001] BTC 8039
Links:
Statutes:
Inheritance Tax Act 1984 3(1) 5 272
Jurisdiction:
England and Wales
Citing:
Appeal from – Melville and Others v Inland Revenue Commissioners ChD 27-Jun-2000
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 . .
Lists of cited by and citing cases may be incomplete.
Inheritance Tax, Capital Gains Tax, Trusts
Updated: 31 May 2022; Ref: scu.147653
