Source: All England Reporter
Publisher Citation: [2002] All ER (D) 154 (Jul)
Neutral Citation: [2002] EWHC 1360 (Ch)
Court: Chancery Division

Lightman J

Representation David Ewart (instructed by the Solicitor of Inland Revenue) for the Revenue.
  Andrew Thornhill QC and Jeremy Woolf (instructed by Triggs Wilkinson Mann) for the executors.
Judgment Dates: 10 July 2002


Inheritance tax - Lifetime transfer - Gift of property subject to a reservation - Whether entitlement of settlor under settlement as discretionary beneficiary constituting reservation of interest - Whether gift of life interest to settlor's husband operating to exempt trust fund from provision relating to reservation of interest for all time or only so long as husband's life interest subsisting - s 102(3)(5).

The Case

On its true construction the language of s102(5) of the looked at the disposal at the date on which it was made and its character (as a transfer between spouses) had to be determined at that date. If the gift answered that character at that date, the provisions of s102 relating to property subject to a reservation had no application.

Practice Areas

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