Wordie's Trustees v. Wordie [1921] ScotLR 39 (08 November 1921)

Wordie's Trustees v. Wordie [1921] ScotLR 39 (08 November 1921)

The phrase 'free of income tax' in the marriage contract must be construed to include super tax, as super tax is statutorily defined as an additional income tax. However, the annuity under the will and codicil is not expressed to be free of income tax, and the terms of the marriage contract cannot be imported to alter the nature of the bequest under the will.

Citation
[1921] ScotLR 39
Parties
First Parties: George Buchanan of Gask, Perthshire, and others, the testamentary trustees of Peter Wordie; Second Party: Mrs Mary Storey M'Gregor or Wordie
Jurisdiction
Scotland
Judgment Date
08 November 1921
Procedural Posture
Special Case (court of Session, Inner House, Second Division) / Judgment on Construction of Marriage Contract and Will
Outcome
Sixth question (marriage contract annuity free of super tax) answered in the affirmative; seventh question (will annuity free of income tax/super tax) answered in the negative.
Legal Topics
Construction of Wills, Annuities, Income Tax, Super Tax, Marriage Contract
Succession Law Tax Law Construction of Wills Annuities Income Tax Super Tax Marriage Contract

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Parties

George Buchanan of Gask, Perthshire, and others, the testamentary trustees of Peter Wordie

First Parties

Mrs Mary Storey M'Gregor or Wordie

Second Party

Procedural Posture

Special Case (court of Session, Inner House, Second Division) / Judgment on Construction of Marriage Contract and Will

Legal Issues

  1. 1 Whether the annuity under the antenuptial marriage contract payable to the widow 'free of income tax' is also free of super tax
  2. 2 Whether the annuity under the will and codicil is payable free of income tax and super tax

Ratio Decidendi

The phrase 'free of income tax' in the marriage contract must be construed to include super tax, as super tax is statutorily defined as an additional income tax. However, the annuity under the will and codicil is not expressed to be free of income tax, and the terms of the marriage contract cannot be imported to alter the nature of the bequest under the will.

Court Disposition

Sixth question (marriage contract annuity free of super tax) answered in the affirmative; seventh question (will annuity free of income tax/super tax) answered in the negative.

Orders

  • Trustees must pay the marriage contract annuity to the widow free of both income tax and super tax.
  • Trustees are not required to pay the will/codicil annuity free of income tax or super tax.