Payne & Anor v Tyler & Anor [2019] EWHC 2347 (Ch) (12 September 2019)

Payne & Anor v Tyler & Anor [2019] EWHC 2347 (Ch) (12 September 2019)

The trustees made a causative mistake as to the inheritance tax consequences of the deed of appointment, which was fundamental to the transaction and resulted in significant unintended tax liability. It would be unconscionable to leave the mistake uncorrected; therefore, the deed should be rescinded.

Citation
[2019] EWHC 2347 (Ch)
Parties
Claimant: Nicholas Henry Payne; Claimant: James Michael Rowland Alston; Defendant: Sarah Tyler; Defendant: Heather Alston
Jurisdiction
England and Wales
Judgment Date
12 September 2019
Procedural Posture
Part 8 Claim / Judgment on Application for Rescission of Deed
Outcome
Claim allowed; deed of appointment rescinded.
Legal Topics
Rescission for Mistake, Inheritance Tax, Trust Law, Mistake in Voluntary Disposition
Equity Trusts and Estates Taxation Rescission for Mistake Inheritance Tax Trust Law Mistake in Voluntary Disposition

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Parties

Nicholas Henry Payne

Claimant

James Michael Rowland Alston

Claimant

Sarah Tyler

Defendant

Heather Alston

Defendant

Procedural Posture

Part 8 Claim / Judgment on Application for Rescission of Deed

Legal Issues

  1. 1 Whether the deed of appointment dated 6 April 2012 should be rescinded on the grounds of mistake
  2. 2 Whether the mistake was sufficiently serious and central to the transaction to justify equitable relief

Ratio Decidendi

The trustees made a causative mistake as to the inheritance tax consequences of the deed of appointment, which was fundamental to the transaction and resulted in significant unintended tax liability. It would be unconscionable to leave the mistake uncorrected; therefore, the deed should be rescinded.

Court Disposition

Claim allowed; deed of appointment rescinded.

Orders

  • Rescission of the deed of appointment dated 6 April 2012.