Lord Advocate v. Harvey's Trustees [1901] ScotLR 39_71 (29 October 1901)

Lord Advocate v. Harvey's Trustees [1901] ScotLR 39_71 (29 October 1901)

Estate-duty was not paid in respect of 'settled property' at the time of the brother's death, as the property was given absolutely to Mrs Harvey and only became settled by her subsequent marriage contract. Therefore, the exemption in section 5(2) of the Finance Act 1894 does not apply, and estate-duty is payable on Mrs Harvey's death.

Citation
[1901] ScotLR 39_71
Parties
Pursuer and Respondent: Lord Advocate; Defenders and Reclaimers: Harvey's Trustees
Jurisdiction
Scotland
Judgment Date
29 October 1901
Procedural Posture
Revenue Action for Estate Duty / Inner House, First Division, Reclaiming Motion (appeal) Against Lord Ordinary's Interlocutor
Outcome
Appeal dismissed; interlocutor of Lord Ordinary affirmed.
Legal Topics
Estate Duty, Settled Property, Exemption From Double Duty, Interpretation of Finance Act 1894
Revenue Law Trusts and Estates Estate Duty Settled Property Exemption From Double Duty Interpretation of Finance Act 1894

Case Brief

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Parties

Lord Advocate

Pursuer and Respondent

Harvey's Trustees

Defenders and Reclaimers

Procedural Posture

Revenue Action for Estate Duty / Inner House, First Division, Reclaiming Motion (appeal) Against Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Whether estate-duty is payable on trust funds derived from a legacy to Mrs Harvey, given that estate-duty was already paid on the brother's estate;
  2. 2 Whether the property in question qualifies as 'settled property' under section 5(2) of the Finance Act 1894, entitling it to exemption from further estate-duty.

Ratio Decidendi

Estate-duty was not paid in respect of 'settled property' at the time of the brother's death, as the property was given absolutely to Mrs Harvey and only became settled by her subsequent marriage contract. Therefore, the exemption in section 5(2) of the Finance Act 1894 does not apply, and estate-duty is payable on Mrs Harvey's death.

Court Disposition

Appeal dismissed; interlocutor of Lord Ordinary affirmed.

Orders

  • Defenders (Harvey's Trustees) appointed to lodge an account for estate-duty calculation.