Ashcroft v Barnsdale & Ors [2010] EWHC 1948 (Ch) (30 July 2010)

Ashcroft v Barnsdale & Ors [2010] EWHC 1948 (Ch) (30 July 2010)

The Deed of Variation failed to give effect to the parties' true agreement that the children should bear the inheritance tax liability, and the omission of 'subject to inheritance tax' was a rectifiable mistake. Rectification is granted to reflect the parties' common intention and to avoid unintended tax consequences for the Claimant.

Citation
[2010] EWHC 1948 (Ch)
Parties
Claimant: David Arnold Ashcroft; First Defendant: Andrew Davison Barnsdale; Second Defendant: Helen Mary Ashcroft; Third Defendant: Richard David Ashcroft
Jurisdiction
England and Wales
Judgment Date
30 July 2010
Procedural Posture
Part 8 Claim for Rectification of Deed / Judgment After Uncontested Hearing
Outcome
Claim for rectification upheld
Legal Topics
Rectification of Deeds, Inheritance Tax, Mistake in Legal Documents
Equity Wills and Probate Tax Rectification of Deeds Inheritance Tax Mistake in Legal Documents

Case Brief

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Parties

David Arnold Ashcroft

Claimant

Andrew Davison Barnsdale

First Defendant

Helen Mary Ashcroft

Second Defendant

Richard David Ashcroft

Third Defendant

Procedural Posture

Part 8 Claim for Rectification of Deed / Judgment After Uncontested Hearing

Legal Issues

  1. 1 Whether the Deed of Variation should be rectified to reflect the parties' true intention regarding the incidence of inheritance tax liability
  2. 2 Whether the omission of 'subject to inheritance tax' in the Deed of Variation constitutes a rectifiable mistake

Ratio Decidendi

The Deed of Variation failed to give effect to the parties' true agreement that the children should bear the inheritance tax liability, and the omission of 'subject to inheritance tax' was a rectifiable mistake. Rectification is granted to reflect the parties' common intention and to avoid unintended tax consequences for the Claimant.

Court Disposition

Claim for rectification upheld

Orders

  • Rectification of the Deed of Variation to substitute '5' for '6' in Clause 2.1 and to insert 'subject to inheritance tax' in Clause 2.1(a) as specified in the claim form
  • No order as to costs