Barclays v HMRC [2011] EWCA Civ 810

November 2011 #114

The trustees (the bank) appealed from the decision of Vos J to dismiss an appeal against a determination by HMRC. HMRC had decided that the residuary estates of Constance and William Poppleston were to be treated as if they were part of the estate of Edwin Poppleston (the son of Constance and William) because s89 of the Inheritance Tax Act 1984 (the Act) required Edwin to be treated as if he had an interest in possession in each of them. If Edwin was not to be treated as if he had such interests in possession then HMRC was liable to repay the bank £158,963 with interest.

Edwin wa...

Drake v Harvey & ors [2011] EWCA Civ 838

November 2011 #114

Mr and Mrs H, their son A and their daughter F were partners in a partnership engaged in farming. The partnership was governed by a partnership deed dated 14 February 1989. One of the assets of the farming partnership was farmland worth approximately £5.5m. Mr and Mrs H ceased to be partners as a result of their loss of mental capacity. They have since died. A ceased to be a partner on his death and therefore F was the only surviving partner.

The partnership capital was originally divided into A and B capital and additional capital. By clause 6 of the partnership deed, A capital h...