Coombes v Revenue & Customs [2007] EWHC 3160 (Ch) (20 November 2007)

Coombes v Revenue & Customs [2007] EWHC 3160 (Ch) (20 November 2007)

The appellant was not a settlor in relation to the Sagittarius Settlement for the purposes of section 86 because the land disposed of by Rose Lodge was not settled property originating from the appellant; it was not at any stage held on the trust of the Sagittarius Settlement and did not represent property ever held on those trusts. Therefore, the assessment attributing gains to the appellant was made on a false basis.

Citation
[2007] EWHC 3160 (Ch)
Parties
Claimant/respondent: Coombes; Defendant/appellant: Her Majesty's Revenue & Customs
Jurisdiction
England and Wales
Judgment Date
20 November 2007
Procedural Posture
Appeal / Judgment on Appeal From General Commissioners
Outcome
Appeal allowed; assessment discharged.
Legal Topics
Capital Gains Tax, Settlor Liability, Trusts, Non Resident Companies, Tax Avoidance
Tax Law Capital Gains Tax Settlor Liability Trusts Non Resident Companies Tax Avoidance

Case Brief

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Parties

Coombes

Claimant/respondent

Her Majesty's Revenue & Customs

Defendant/appellant

Procedural Posture

Appeal / Judgment on Appeal From General Commissioners

Legal Issues

  1. 1 Whether the appellant was a settlor in relation to the Sagittarius Settlement under section 86 of the Taxation of Chargeable Gains Act 1992
  2. 2 Whether gains from the disposal of land by Rose Lodge (10m) Ltd could be attributed to the appellant under section 86

Ratio Decidendi

The appellant was not a settlor in relation to the Sagittarius Settlement for the purposes of section 86 because the land disposed of by Rose Lodge was not settled property originating from the appellant; it was not at any stage held on the trust of the Sagittarius Settlement and did not represent property ever held on those trusts. Therefore, the assessment attributing gains to the appellant was made on a false basis.

Court Disposition

Appeal allowed; assessment discharged.

Orders

  • The appeal is allowed.
  • The assessment of Capital Gains Tax for the year 1995 to 1996 is discharged.