Curtis Green v HMRC [2015] UKFTT 0236 (TC)
Wills & Trusts Law Reports | October 2015 # 153Mrs Green ran a business known as Flagstaff Holidays (the business) which let five units of self-contained holiday accommodation in a property known as Flagstaff House, Burnham Overy Staithe, King’s Lynn, Norfolk (the property). Mrs Green had bought the property for £900,000 in 2003. Between 2009-2012, the property was let for a total of around 650 to 750 nights a year. At all relevant times, Mrs Green lived in Woodbridge, Suffolk. On 2 February 2010, the property was valued by a firm of estate agents at £1.9m on a vacant possession basis.
On 5 April 2010, Mrs Green settled ...
Hutchings v HMRC [2015] UKFTT 0009 (TC) On appeal from: TC/2013/00644
Wills & Trusts Law Reports | October 2015 # 153Robert James Hutchings (‘deceased’) owned a farm in West Sussex, from which he operated a number of businesses, valued at his death at about £3m. He had an offshore bank account with Julius Bär in Switzerland and, approximately six months before his death, authorised a transfer of the balance to the appellant. The sum transferred was £443,669.00. The appellant was also principal beneficiary under the will of the deceased, who died on 14 October 2009. The executors, who were a solicitor and a land agent, met with members of the family on 29 October 2009 during the course of wh...
Scott v HMRC [2015] UKFTT 0266 (TC)
Wills & Trusts Law Reports | October 2015 # 153This appeal related to an inheritance tax notice of determination dated 22 May 2013 in respect of the estate of Dr Olive Scott (Olive) who died on 4 March 2007. Olive was predeceased by her husband Professor James Scott (James). The appellant, Malcolm Scott (Malcolm), was her surviving son and co-executor. The other executor had been Olive’s son Alistair Scott (Alistair), who died on 7 November 2009. There had been a dispute between Alistair and Malcolm as to the correct inheritance tax position in relation to certain paintings, and this had led to their filing separate IHT400 acco...
Vaughan-Jones & anr v Vaughan-Jones & ors [2015] EWHC 1086 (Ch)
Wills & Trusts Law Reports | September 2015 #152The claimants were the executors of the will of the deceased dated 8 September 2000 whereby his residuary estate passed to his widow and three sons in equal shares absolutely. The first defendant was the deceased’s widow and the first claimant and second and third defendants were his sons.
Under the will, inheritance tax would be payable on the estate in respect of land and farming assets which did not qualify for agricultural property or business property relief on the three quarters of the residuary estate which had passed to the deceased’s sons. The beneficiaries decided that t...
Seddon & ors v HMRC [2015] UKFTT 140
Wills & Trusts Law Reports | July/August 2015 #151The appellants were trustees of a discretionary settlement settled in 1999. The settlement’s original assets were five £1 ordinary shares in a limited company. In 2000 the settlement received a scrip dividend of preference shares in the company. The preference shares were sold by the trustees two days after their receipt. Their value was £1,382,750. Some nine years later and a few days before the settlement’s ten year anniversary the trustees made a distribution worth £1,260,361 to certain beneficiaries.
The principal issues concerning were:
- 1. Whether the...
Chada & ors v HMRC [2014] UKFTT 1061(TC)
Wills & Trusts Law Reports | June 2015 #150Kingston Smith were engaged to provide inheritance tax planning advice to Mr and Mrs Robin, who had terminal medical conditions, in early 2003. They wished to ensure that as much of their property should be available to support the survivor and, following the death of the survivor, their disabled daughter. Mr Chadda, who was a partner at Kingston Smith, discussed strategy at a meeting with Mr and Mrs Tobin based on utilising their inheritance tax nil rate bands, which would require them to make new wills and (in case of a beneficial joint tenancy) service of a notice of severance in rela...
Routier & anr v HMRC Neutral citation: [2014] EWHC 3010 (Ch)
Wills & Trusts Law Reports | December 2014 #145This was an appeal from notices of determination by HMRC which held that dispositions in the will of Beryl Coulter (the deceased) did not fall within s23 of the Inheritance Tax Act 1984, and were therefore not exempt from inheritance tax. The deceased died on 9 October 2007 domiciled in Jersey. Her final will was dated 1 October 2004 and probate was granted in the probate division of the Royal Court of Jersey on 25 October 2007. The will made several legacies totalling £210,000 and the residue passed to her executors to be held on the terms of the Coulter Trust for the purpose of the pro...
Giles v Royal National Institute for the Blind & Ors [2014] EWHC 1373 (Ch)
Wills & Trusts Law Reports | October 2014 #143The claimant claimed as the administratrix of the estate of Ellen Bolton (Ellen) for rectification of a deed of variation by which she had purported to vary the will of Hilda Bolton (Hilda).
Hilda had died on 6 February 2006. Her sister, Ellen, died on 11 September 2007. By her last will Hilda had benefited Ellen in two respects: as the beneficiary of a specific devise of a particular freehold property (the property) at clause 2(a) of the will and also as the sole residuary beneficiary under clause 5 of the will. As Ellen survived Hilda these gifts took effect. The gifts were char...
JP Gilchrist Trust v HMRC Case number: FTC/89/2012
Wills & Trusts Law Reports | September 2014 #142Mr Gilchrist settled property on trust on 17 May 1993. Under the terms of the trust, he was entitled to a life interest in the trust property. On 4 June 1993, the trustees exercised an overriding power of appointment to appoint 20% of the fund (the appointed fund) out of the main fund, on discretionary trust for the benefit of members of Mr Gilchrist’s family. Mr Gilchrist and his spouse were excluded from any benefit in the discretionary trust. Mr Gilchrist then gifted £44,000 to the trustees. The trustees used the funds to contribute to Whitecroft Limited, in which the trust held...
Loring v Woodland Trust [2013] EWHC 4400 (Ch)
Wills & Trusts Law Reports | May 2014 #139The testatrix, T, died on 1 September 2011 leaving an estate with a net value of £680,805. Her will, dated 2 February 2001, included provision for a nil rate band legacy for her children and grandchildren under clause 5 which stated:
‘MY TRUSTEES shall set aside out of my residuary estate assets or cash of an aggregate value equal to such sum as is at the date of my death the amount of my unused nil rate band for inheritance tax and to hold the same for such of the following as shall survive me.’
The residue was left to the first defendant, the Woodland Trust ...