Routier & Anor v The Commissioners for HMRC

Routier & Anor v The Commissioners for HMRC

Jersey is to be treated as a third country for the purposes of Article 56 EC. HMRC is entitled to refuse inheritance tax relief on gifts to non-UK charities unless there is a mutual assistance agreement between the UK and the country in which the charity is based. The restriction in IHTA s 23 is justified under EU law on grounds of effective fiscal supervision. IHTA s 23 can be interpreted in conformity with EU law to permit relief only where there is such an agreement. The appeal is dismissed.

Parties
Appellants: Routier & Anr; Respondents: The Commissioners for HM Revenue and Customs; Intervener: Attorney General for Jersey (Intervener)
Jurisdiction
England and Wales
Judgment Date
17 October 2017
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Inheritance Tax, Freedom of Movement of Capital, Charitable Relief, Mutual Assistance Agreements, Interpretation of Statutes
Tax Law European Union Law Charity Law Inheritance Tax Freedom of Movement of Capital Charitable Relief Mutual Assistance Agreements Interpretation of Statutes

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Parties

Routier & Anr

Appellants

The Commissioners for HM Revenue and Customs

Respondents

Attorney General for Jersey (Intervener)

Intervener

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether Jersey is a third country for the purposes of Article 56 EC (now Article 63 TFEU) on freedom of movement of capital
  2. 2 Whether the restriction in IHTA s 23 is justified under EU law on grounds of effective fiscal supervision (EFS)
  3. 3 Whether IHTA s 23 can be interpreted in conformity with EU law

Ratio Decidendi

Jersey is to be treated as a third country for the purposes of Article 56 EC. HMRC is entitled to refuse inheritance tax relief on gifts to non-UK charities unless there is a mutual assistance agreement between the UK and the country in which the charity is based. The restriction in IHTA s 23 is justified under EU law on grounds of effective fiscal supervision. IHTA s 23 can be interpreted in conformity with EU law to permit relief only where there is such an agreement. The appeal is dismissed.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed; HMRC's determination stands; no relief from inheritance tax for the gift to the Jersey charity in absence of a mutual assistance agreement.