Jasmine Trustees Ltd & Ors v Wells & Hind (A Firm) & Anor

Jasmine Trustees Ltd & Ors v Wells & Hind (A Firm) & Anor

'Individuals' in s.37(1)(c) Trustee Act 1925 means natural persons only; corporate trustees cannot satisfy the requirement for discharge unless a trust corporation or at least two natural persons act as trustees. Trustees de son tort are not trustees of the settlement for CGT purposes; only properly appointed...

Source-derived case information.

Parties
Claimant: Jasmine Trustees Limited; Claimant: Lutea Trustees Limited; Claimant: Edward Mervyn Wingfield; Claimant: Venetia Sophie Wingfield; Claimant: Sarah Jane Wingfield; Claimant: Camilla Faith Douglas-Pennant; Claimant: Sarah Frances Jane Douglas Pennant; Defendant: Wells & Hind; Defendant: Eversheds
Jurisdiction
England and Wales
Judgment Date
19 January 2007
Procedural Posture
Professional Negligence / Determination of Preliminary Issues
Outcome
All preliminary issues determined in favour of claimants' interpretation; defendants' arguments rejected.
Legal Topics
Interpretation of Trustee Act 1925 S.37(1)(c), Corporate Trusteeship, Capital Gains Tax Liability, Constructive Trusteeship, Validity of Trustee Appointments
Trusts Taxation Professional Negligence Interpretation of Trustee Act 1925 S.37(1)(c) Corporate Trusteeship Capital Gains Tax Liability Constructive Trusteeship Validity of Trustee Appointments

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Parties

Jasmine Trustees Limited

Claimant

Lutea Trustees Limited

Claimant

Edward Mervyn Wingfield

Claimant

Venetia Sophie Wingfield

Claimant

Sarah Jane Wingfield

Claimant

Camilla Faith Douglas-Pennant

Claimant

Sarah Frances Jane Douglas Pennant

Claimant

Wells & Hind

Defendant

Eversheds

Defendant

Procedural Posture

Professional Negligence / Determination of Preliminary Issues

Legal Issues

  1. 1 Does 'individuals' in s.37(1)(c) Trustee Act 1925 include corporations?
  2. 2 Were certain trustees validly appointed for CGT purposes?
  3. 3 Were resolutions by ostensible trustees valid?

Ratio Decidendi

'Individuals' in s.37(1)(c) Trustee Act 1925 means natural persons only; corporate trustees cannot satisfy the requirement for discharge unless a trust corporation or at least two natural persons act as trustees. Trustees de son tort are not trustees of the settlement for CGT purposes; only properly appointed trustees are relevant for tax residence and validity of resolutions.

Court Disposition

All preliminary issues determined in favour of claimants' interpretation; defendants' arguments rejected.

Orders

  • 'Individuals' in s.37(1)(c) Trustee Act 1925 does not include corporations.
  • None of INL, Mr Vanderpump, Mr Winearls, or Mr Taylor was a trustee of the settlement for CGT purposes.