Routier and Another v Revenue and Customs: CA 16 Sep 2016

Executors appealed against a decision that a residual gift in a will was not charitable and that it was therefore subject to Inheritance Tax arguing that the section if construed in this way was an unlawful restriction on the free movement of captal. The revenue contended that the gift by a Jersey resident was to a Jersey Trust which was not solely charitable not being subject only to UK law.
Held: The authority as to the charity point was unassailable and the trustees’ appeal om that point failed. However, the court could not reconcile the question as to freedom of movement under European law, and it asked the parties to consider a question for referral to the European Court o Justice.

Moore-Bick VP CA, Tomlinson, Kitchin LJJ
[2016] EWCA Civ 938, [2016] WLR(D) 496
Bailii, WLRD
Inheritance Tax Act 1984 23, TFEU 63, Income Tax Act 2007 989
England and Wales
At ChDRoutier and Another v Revenue and Customs ChD 18-Sep-2014
Executors appealed against rejection of their claim that a gift in the will qualified for relief against Inheritance Tax as being a charitable gift. The Trusts concerned assets in Jersey.
Held: The appeal failed: ‘The expression ‘held on trust . .
CitedCamille and Henry Dreyfus Foundation Inc v Inland Revenue Commissioners CA 1954
The Court considered whether it had jurisdiction to make an order with respect to a company registered in New York for objects which were charitable according to the laws of England.
Held: The Revenue’s appeal against a finding that the . .
CitedCamille and Henry Dreyfus Foundation Inc v Inland Revenue Commissioners HL 1956
The company was a foreign corporation constituted according to the laws of the state of New York for objects which were exclusively charitable according to the law of the United Kingdom.
Held: The term ‘charity’ does not include an institution . .
CitedBarras v Aberdeen Steam Trawling and Fishing Co HL 17-Mar-1933
The court looked at the inference that a statute’s draughtsman could be assumed when using a phrase to rely on a known interpretation of that phrase.
Viscount Buckmaster said: ‘It has long been a well established principle to be applied in the . .
CitedRoque v The Lieutenant Governor of Jersey ECJ 16-Jul-1998
(Judgment) Free movement of persons – Act of Accession 1972 – Protocol No 3 concerning the Channel Islands and the Isle of Man – Jersey . .
CitedHM Inspector of Taxes v Dextra Accessories Ltd HL 7-Jul-2005
The taxpayer companies had paid funds into a trust for employees. They sought to set off the payments against their liability to corporation tax. The revenue argued that they were deductible only in the year in which they were paid to the employees. . .

Lists of cited by and citing cases may be incomplete.

Inheritance Tax, Charity, European

Updated: 31 October 2021; Ref: scu.569895