Futter & Anor v Futter & Ors

Futter & Anor v Futter & Ors

The trustees failed to take into account section 2(4) TCGA, resulting in unintended and significant tax consequences. On the evidence, they would not have acted as they did had they known the true position. The Rule in Hastings-Bass applies, rendering the deeds void.

Parties
Claimant: Mark Stephen Futter; Claimant: Clive Donald Cutbill; Defendant: Elizabeth Gaye Futter; Defendant: Adam Jacob Futter; Defendant: James Daniel Futter; Defendant: Natalie Helen Futter; Defendant: The Commissioners for HM Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
11 March 2010
Procedural Posture
Civil / Judgment
Outcome
deeds declared void
Legal Topics
Exercise of Trustee Powers, Capital Gains Tax, Hastings Bass Principle, Mistake in Trust Administration
Trusts Tax Exercise of Trustee Powers Capital Gains Tax Hastings Bass Principle Mistake in Trust Administration

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 24 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Mark Stephen Futter

Claimant

Clive Donald Cutbill

Claimant

Elizabeth Gaye Futter

Defendant

Adam Jacob Futter

Defendant

James Daniel Futter

Defendant

Natalie Helen Futter

Defendant

The Commissioners for HM Revenue and Customs

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether the trustees' exercise of powers of enlargement and advancement under the Futter (No.3) and (No.5) Life Interest Settlements are void due to failure to consider relevant tax consequences
  2. 2 Whether the Rule in Hastings-Bass applies to set aside the deeds executed by the trustees

Ratio Decidendi

The trustees failed to take into account section 2(4) TCGA, resulting in unintended and significant tax consequences. On the evidence, they would not have acted as they did had they known the true position. The Rule in Hastings-Bass applies, rendering the deeds void.

Court Disposition

deeds declared void

Orders

  • The Deed dated 31 March 2008 and the Deed dated 3 April 2008 are set aside as void.
  • Any property passing as a result of their execution must be returned to the trustees and an account given of all income received.