Re The Portman Estate [2015] EWHC 536 (Ch)

June 2015 #150

This claim comprised various applications relating to the trusts of the Portman Estate, which own significant real property in London and elsewhere. There are several separate settlements, whose property is held in various funds. The claim was brought by the trustees, without naming any defendants. However, two key beneficiaries consented to the proposed application in writing.

The trustees sought orders under s57 Trustee Act 1925 conferring various powers on the trustees of various different trusts of the estate. None of the powers sought affected the beneficial interest...

Quan v Bray & ors [2014] EWHC 3340 (Fam)

June 2015 #150

In 2000 Li Quan (the wife) created a charity called Save China’s Tigers. In 2002 her husband Stuart Bray (the husband) established a fully discretionary trust in Mauritius called the Chinese Tigers South Africa Trust (CTSAT) – the sole beneficiary of which was the charity.

In July 2012 the wife was removed as a director of the charity and in August 2012 she filed for divorce and made no mention of the trust. On 17 July 2013 she filed an application by way of amendment to her form A seeking a variation of the post nuptial settlement. The core of her case being that CTSAT was ...

Chada & ors v HMRC [2014] UKFTT 1061(TC)

June 2015 #150

Kingston 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...

Drown & anr (as Executors of Leadley Deceased) v HMRC [2014] UKFTT 892 (TC)

June 2015 #150

Prior to his death on 11 May 2010, the deceased had bought £25,000 of shares in two companies and made a loan of £334,784.00 to a third company. It was accepted by HMRC that by 5 April 2010 the shareholdings were of negligible value. The loan to the third company had become irrecoverable as of 3 November 2009. The deceased’s 2009/2010 tax return was submitted by the appellants who were the deceased’s executors. Capital losses of £384,784.00 were reported and a claim to offset £40,000 against the deceased’s income was made. It was accepted by HMRC that the deceased would...

The Human Dignity Trust v The Charity Commission For England and Wales CA/2013/0013

June 2015 #150

The Human Dignity Trust (HDT) is a company limited by guarantee, incorporated on 16 December 2010. It was established to support people whose human rights were violated by the criminalisation of private, adult, consensual homosexual conduct, including by assisting them and their lawyers to bring litigation in domestic courts and tribunals, or against a state before international courts and tribunals. Its objects were to promote and protect human rights throughout the world, including the rights to human dignity and to be free from cruel, inhuman or degrading treatment or punishment, the ...

Julia Lomas v AK (Gift Application) [2014] EWCOP B11

June 2015 #150

This was an application by the deputy of an 11 year-old boy (AK) for a gift of £150,000 to be made by him to his parents from the damages awarded to AK under a settlement of a clinical negligence claim brought by his mother acting as his litigation friend against the local NHS Trust in 2009.

AK was born in October 2002 and suffers from cerebral palsy as a result of a prolonged period of hypoxia at the time of his birth. In 2009, the High Court approved a settlement in his favour of the clinical negligence claim. The settlement included a lump sum payment of £1,050,000 plus the fol...

Kennedy & ors v Kennedy & ors [2014] EWHC 4129 (Ch)

June 2015 #150

The trustees of a settlement dated 16 December 2003 made by the first claimant, Brian Kennedy, (the settlement) sought an order to correct a mistake made in the terms of an appointment dated 1 October 2008 (the October 2008 appointment).

Under the terms of the settlement, of which Mr Kennedy was originally the sole trustee, Mr Kennedy had a life interest in possession. The settlement contained a power of appointment exercisable by the trustees in favour of Mr Kennedy, his children and remoter issue. In default of appointment, the capital was held on trust for Mr Kennedy’s ch...

King & anr v Gershon Robertson (St Vincent and the Grenadines) [2014] UKPC 34

June 2015 #150

The appeal arose out of a disputed claim to land.

In 1856 or 1857 W, who had been seised of land in fee simple, died. His will set out to leave a life interest in the land to his widow and thereafter to his four named children and after them to five named grandchildren. One of those grandchildren had (at least) two sons, E and B.

The respondent, G, was the grandson of B.

The appellants, K and R, derived their title from the other son E. In 1947, E had made a will asserting that he was the freehold owner of the land, it having devolved upon him as the heir at law of W...

Litman & anr v HMRC [2014] UKFTT 089 (TC)

June 2015 #150

This was the conjoined appeal of two taxpayers against penalty determinations issued against them by HMRC. The taxpayers, who were both business people who held directorships in a number of UK companies, had realised capital gains on the disposal of an entity known as Efforsenrab Ltd and land and buildings in Essex in the UK. They participated in a capital redemption policy scheme and claimed a capital loss arising from that scheme to be set against the capital gains which they had realised. They both signed a professional services agreement with a tax adviser under which it agreed to pr...