HL Estate duty – Share valuation – Unquoted shares – What information to be deemed available to hypothetical purchaser in open market – Finance Act 1894 (57 6 58 Viet., c.30), 5.7(5). Citations:  UKHL TC – 47 – 375, 47 TC 375,  3 All ER 914,  AC 680,  3 WLR 759, … Continue reading Lynall v Inland Revenue Commissioners: HL 27 Oct 1971
The defendants resisted claims by lenders for the payment of mortgage debts. In each case the lender had exercised the power of sale before issuing proceedings for possession. The defendants queried the limitation period applicable. Held: The exercise of the power of sale did not mean that the original mortgage debt changed. The recovery of … Continue reading Bristol and West plc v Bartlett and Another; Paragon Finance plc v Banks; Halifax plc v Grant: CA 31 Jul 2002
(Hong Kong) The ship-owners challenged the arrest of the ship under a mortgage in favour of the bank. They said no instalment was due. Held: The plaintiffs were not obliged to give notice accelerating repayment of the loan before exercising their express power of sale under that clause. It follows that the writ, though defective … Continue reading Banque Worms v Owners of the Ship Or Vessel Maule and others: PC 24 Feb 1997
The father, Lord Nichols, in 1954, decided to make a gift of his family home and the surrounding estate to his son, aged 22. The father was to transfer the estate and the son would immediately lease the bulk of the property back to the father, the lease to contain a full repairing covenant on … Continue reading In re Nichols, deceased: ChD 1974
The father, Lord Nichols, gave property to his sons who then leased it back to him. On the father’s death the revenue claimed duty. Held: Goff LJ: ‘Having thus reviewed the authorities, we return to the question what was given, and we think that a grant of the fee simple, subject to and with the … Continue reading In re Nichols, deceased: CA 2 Jan 1975
The House was asked about the fixing of ‘price . . in the open market’ of a parcel of shares held in a private company. The Finance Act 1894 provided a method of valuation of property for estate duty purposes by reference to what the property would fetch if sold in the open market at … Continue reading Lynall v Inland Revenue Commissioners: HL 2 Jan 1971
Section 1 of the Finance Act 1894 enacts that estate duty should be leviable on the principal value of all property, real or personal, settled or not settled, which passes on the death of the deceased. Section 2, sub-section 1, as amended by section 59 of the Finance (1909-10) Act 1910, enacts-‘Property passing on the … Continue reading Attorney General v Milne: HL 7 Apr 1914
Revenue – Estate Duty – Foreign Domicile of Deceased – Property Situated in Great Britain Citations:  UKHL 593, 47 SLR 593 Links: Bailii Statutes: Finance Act 1894 Jurisdiction: England and Wales Inheritance Tax Updated: 25 April 2022; Ref: scu.620600
When a valuation was to be attributed to a property the test must be applied to the property as it actually existed and not to some other property, even if in real life a vendor would have been likely to make some changes or improvements before putting it on the market. As to ‘Splitting and … Continue reading Duke of Buccleuch v Inland Revenue Commissioners: HL 1967
The court considered the effect of the Limitation Acts on the rights of a secured creditor where there was an express shortfall provision in a mortgage deed. There was an express promise by a mortgagor to pay the difference on realisation of the . .
It had been alleged that there had been a conspiracy involving the company giving unlawful financial assistance for the purchase of its own shares.
Held: Dishonesty is not a necessary ingredient of liability in an allegation of a ‘knowing . .
The parties had engaged in a bitter 95 day trial in which allegations of forgery, theft, false accounting, blackmail and arson. A company owning patents and other rights had become insolvent, and the real concern was the destination and ownership of . .
A limited company is not a trustee of its funds, but their beneficial owner. However, the fiduciary character of the duties of its directors mean that they are treated as if they were trustees of those funds of the company which are in their hands . .
The deceased had first conveyed property to her solicitor. Leases back were then created in her favour, and then the freeholds were conveyed at her direction to her children and grandchildren. They were potentially exempt transfers.
Held: . .
Surtax – Profits Tax – Company under control of not more than five persons-No estate or trading income-Income receipts less than deduction for Profits Tax in computing actual income from all sources – Whether Profits Tax payable ‘ – Whether Surtax . .
Harman LJ said: ‘The sale envisaged by the section is, as is agreed, not a real but a hypothetical sale, and must be taken to be a sale between a willing vendor and a willing purchaser: see, for instance, the speech of Lord Guest in In re Sutherland [ 1963] AC 235 , at page … Continue reading In re Lynall deceased: CA 1968
A gift was made within three years of death. Under estate duty law it fell to be treated as property passing on the death. The deceased’s estate was heavily insolvent with a deficit of over andpound;90,000 and the executrix claimed that the aggregate of the virtually negligible personal estate and the preceding gift should be … Continue reading Re Barnes: 1939
The court considered the valuation of shares in a notional purchase. The company’s articles of association contained a provision that the company might at any time, by extraordinary resolution, resolve that any shareholder, other than a director or a person holding more than 10 per cent of the shares of the company do transfer his … Continue reading Salvesen’s Trustees v Inland Revenue Commissioners: SCS 1930
The company had been given permission to cancel a share premium account. Changes in circumstances brought the matter back for reconsideration. Judges: The Lord Chief Justice Of England, Lord Justice Otton And Lord Justice Robert Walker Citations:  EWCA Civ 1732,  2 BCLC 591,  BCC 455,  EWCA Civ 1732,  BCC 455, … Continue reading Winpar Holdings Ltd v Ransomes Plc: CA 1 Jul 1999
A father, equitable tenant for life of an estate, had raised sums amounting to pounds 59,121 on the security of his life estate and of certain policies of insurance on his life. By agreement with his son, equitable tenant in tail in remainder, the estate was disentailed and pounds 71,000 raised on mortgage of the … Continue reading Lethbridge v Attorney General: HL 3 Dec 1906
An heir of entail in possession of Scottish heritage carried out disentailing procedure. The heritage was disentailed, the valued interests of the succeeding heirs being charged thereon. This was admittedly done with the object of reducing the total value of the estate for estate duty purposes by the amounts so charged upon the lands. Held … Continue reading Attorney General v Duke of Richmond: HL 26 Jul 1909
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 … Continue reading Lord Advocate v Sprot’s Trustees: HL 15 May 1902
The former bankrupt resisted sale of his property by the trustee, saying that enforcement was barred by limitation. He and his wife bought the property in early 1988, and he was made bankrupt in October 1988. He was dischaged from bankruptcy in October 1991. In December 1990 the court answered an application for the sale … Continue reading Gotham v Doodes: CA 25 Jul 2006
Standard Conract – Wide Exclusions, Apply 1977 Act The claimant had acquired a computer system from the defendant, which had failed. It was admitted that the contract had been broken, and the court set out to decide the issue of damages. Held: Even though Wang had been ready to amend one or two of its … Continue reading Pegler Ltd v Wang (UK) Ltd: TCC 25 Feb 2000
Volunteer Was Joint Tortfeasor A and B set out together to investigate the source of a gas leak which was B’s direct concern alone. A had come with him to help. Because B was too old to carry out a particular task, A carried it out instead. The means of investigation was ill-advised and an … Continue reading Brooke v Bool: 1928
No Contractual Obligation to Try Case in New York (Gibraltar) The appellant had invested in a fraudulent Ponzi scheme run by Bernard Madoff. They were repaid sums before the fund collapsed, and the trustees now sought repayment by way of enforcement of an order obtained in New York. Held: The appeal was allowed. There was … Continue reading Vizcaya Partners Ltd v Picard and Another: PC 3 Feb 2016
An assessment to income tax had been raised after the employee resold shares in the company issued through the employees’ share scheme at a price which the Revenue said was above the share value. The company appealed against a finding that tax was payable. Held: The appeal failed. The Revenue should calculate the price which … Continue reading Grays Timber Products Ltd v Revenue and Customs: SC 3 Feb 2010
The principal claimants sold the rights to take photographs of their wedding to a co-claimant magazine (OK). Persons acting on behalf of the defendants took unauthorised photographs which the defendants published. The claimants had retained joint copyright over the photographs and reserved a right to control publication of any particular photographs. In return they made … Continue reading Douglas and others v Hello! Ltd and others (No 3): CA 18 May 2005
The company sought to recover damages from a director who had acted dishonestly, by concealing a financial interest in a different company which had made loans to the claimant company. He replied that the claim was out of time. At first instance the first defendant had been found dishonest through non-disclosure, and that section 21 … Continue reading DEG-Deutsche Investitions und Entwicklungsgesellschaft mbH v Koshy and Other (No 3); Gwembe Valley Development Co Ltd (in receivership) v Same (No 3): CA 28 Jul 2003
The donor exercised powers of appointment ‘to make some part of the settled property his own’, and it was ‘wholly irrelevant that by a contemporaneous or later transaction he surrenders his life interest in other parts of it’. The different parts of the property were distinct personal assets, none being real property or an interest … Continue reading St Aubyn v Attorney General: HL 12 Jul 1951
The respondent had issued bonds but in 2001 had declared a moratorium on paying them. The appellant hedge fund later bought the bonds, heavily discounted. Judgment was obtained in New York, which the appellants now sought to enforce against assets in the UK. They argued that the terms of issue waived state immunity. Held: The … Continue reading NML Capital Ltd v Argentina: SC 6 Jul 2011
(Scotland) Neighbours had each granted a standard security over their respective properties to the bank. The charge agreements contained personal covenants to repay the sums borrowed on demand. The land-owners appealed against an order for ejectment. Held: The borrowers’ appeal succeeded. The 1970 Act created the standard security but it was a very technical Act. … Continue reading Royal Bank of Scotland Plc v Wilson and Another: SC 24 Nov 2010
The Revenue sought an order under section 212 of the 1986 Act, for payment of the tax debts of the insolvent company by a de facto director. H had organised a scheme under which IT contractors had worked through companies created by him under a composite company scheme, and in each of which he retained … Continue reading Holland v Revenue and Customs and Another: SC 24 Nov 2010
The parties disputed the claimed beneficial interest of the second defendant. The second defendant (C) said that it had been purchased for him by the first defendant (D) from C’s trustee in bankruptcy, and was thereafter held in trust for him on the . .
VDT VALUE ADDED TAX – input tax -Appellant made exempt supplies of finance (the sale of securities) outside the member states with a right to recovery of input tax (specified supplies) as well as taxable and . .
The claimant alleged infringement of its copyright in a software system which dealt with airline reservations. It was not said that any code had been copied, but merely that an express requirement of the defendant ordering the system was that it . .