Sir Graham Stanley Latimer and others – Trustees for the Crown Forestry Rental Trust v The Commissioner of Inland Revenue: PC 25 Feb 2004

PC (New Zealand) The Crown created a charitable trust for certain Maori people. Upon exhaustion of the purpose, the fund was to revert to the Crown. The trustees appealed a finding of liability to income tax.
Held: A charitable trust could co-exist with a non-charitable trust. ‘The distinction is between ends, means and consequences. The ends must be exclusively charitable. But if the non-charitable benefits are merely the means or the incidental consequences of carrying out the charitable purposes and are not ends in themselves, charitable status is not lost.’ The fact that some residue might revert to a non-charitable purpose on the trust coming to an end need not defeat the charitable nature of the trust. The trust was exempt.


Lord Nicholls of Birkenhead, Lord Millett, Lord Walker of Gestingthorpe, Sir Martin Nourse, Sir Kenneth Keith


[2004] UKPC 13, Times 19-Mar-2004


PC, Bailii, PC


England and Wales


CitedRoyal College of Surgeons of England v National Provincial Bank Ltd HL 1952
The College was established to promote and encourage the study and practice of the art and science of surgery. The professional protection of members of the College (not a charitable purpose) was held to be ‘an incidental though an important and . .
CitedIn re Sir Robert Peel’s School at Tamworth CA 1868
Income under a trust was, until exercise of a power of revocation, if valid, subject to a mandatory trust for expenditure on the maintenance of a school.
Held: Unless and until the power of revocation was exercised, the trust was a valid . .
CitedChichester Diocesan Board of Finance v Simpson HL 21-Jun-1944
The court was asked whether a gift in a will to the trustees ‘for such charitable institution or institutions or other charitable or benevolent object or objects in England’ as they should select, was valid.
Held: ‘The fundamental principle is . .
CitedThellusson v Woodford 1799
A gift over to the Crown was held to be impressed with a charitable trust for the relief of the national debt and so charitable. . .
CitedNewland v Attorney-General 1809
Charitable purpose implied . .
CitedTwinsectra Ltd v Yardley and Others HL 21-Mar-2002
Solicitors acted in a loan, giving an undertaking as to its application. In breach of that undertaking they released it to the borrower. The appellants appealed a finding of liability as contributors to the breach.
Held: ‘Money in a . .
CitedNightingale v Goulbourn 1847
A testamentary gift to the Chancellor of the Exchequer was expressly impressed with a trust for Great Britain. . .
CitedBarclays Bank Ltd v Quistclose Investments Ltd; etc HL 31-Oct-1968
R Ltd were in serious financial difficulties. The company’s overdraft with the appellant bank was almost twice its permitted limit. The company sought a loan of 1 million pounds from a financier, who was willing to lend the company that sum provided . .
CitedAshton v Langdale 1851
Inference of charitable purposes. . .
CitedIn re Smith 1932
A gift ‘unto my country England’ was construed as a charitable gift for the benefit of the inhabitants of England and, by analogy with the cases on gifts to a parish, town or city, as impressed with a trust that it be applied for charitable purposes . .
Lists of cited by and citing cases may be incomplete.

Income Tax, Charity

Updated: 10 June 2022; Ref: scu.193880