Raymond Davies v Novatrust Limited

Raymond Davies v Novatrust Limited

The grossing up clauses in the Novatrust agreements require calculation by reference to the highest rate of income tax actually payable by Mr Davies, not a notional rate, and an implied term exists obliging him to provide income information necessary for that calculation.

Parties
Claimant: Raymond Davies; Defendant: Novatrust Limited
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Civil / Judgment After Trial
Outcome
Claim dismissed; counterclaim allowed
Legal Topics
Interpretation of Contract Terms, Implied Terms, Pension Agreements, Grossing Up Clauses
Contract Law Trust Law Interpretation of Contract Terms Implied Terms Pension Agreements Grossing Up Clauses

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Parties

Raymond Davies

Claimant

Novatrust Limited

Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Proper construction of grossing up clauses in pension agreements
  2. 2 Whether an implied term exists requiring provision of income information for calculation of grossing up

Ratio Decidendi

The grossing up clauses in the Novatrust agreements require calculation by reference to the highest rate of income tax actually payable by Mr Davies, not a notional rate, and an implied term exists obliging him to provide income information necessary for that calculation.

Court Disposition

Claim dismissed; counterclaim allowed

Orders

  • Declaration that Mr Davies’s net pension payments should be grossed up by reference to the highest rate of income tax actually payable by him in his place of residence.
  • Declaration that Mr Davies is obliged to provide income information to Novatrust for calculation of grossing up under the agreements.