Outer House. Inland Revenue v. Heywood Lonsdale's Trustees [1906] ScotLR 43_589 (09 March 1906)

Outer House. Inland Revenue v. Heywood Lonsdale's Trustees [1906] ScotLR 43_589 (09 March 1906)

The £5000 bond and disposition in security, granted by Lord Hamilton within twelve months of his death and without consideration, was property deemed to pass on his death under section 2(1)(c) of the Finance Act 1894 and thus liable for estate duty. As the property was settled under the marriage contract, it was also liable for settlement estate duty under section 5(1) of the Act.

Citation
[1906] ScotLR 43_589
Parties
Pursuer: Inland Revenue; Defender: Heywood Lonsdale's Trustees
Jurisdiction
Scotland
Judgment Date
09 March 1906
Procedural Posture
Civil / Outer House, Court of Session, Judgment
Outcome
Defences repelled; decree granted for estate duty and settlement estate duty on the £5000 bond; defenders ordained to lodge an account; expenses awarded to the Crown.
Legal Topics
Estate Duty, Settlement Estate Duty, Property Passing on Death, Finance Act 1894, Customs and Inland Revenue Act 1881
Revenue Law Trusts and Estates Estate Duty Settlement Estate Duty Property Passing on Death Finance Act 1894 Customs and Inland Revenue Act 1881

Case Brief

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Parties

Inland Revenue

Pursuer

Heywood Lonsdale's Trustees

Defender

Procedural Posture

Civil / Outer House, Court of Session, Judgment

Legal Issues

  1. 1 Whether the £5000 bond and disposition in security granted by Lord Hamilton within a year of his death is property deemed to pass on death under the Finance Act 1894 and liable for estate duty.
  2. 2 Whether the same sum is also liable for settlement estate duty as property settled under a marriage contract.

Ratio Decidendi

The £5000 bond and disposition in security, granted by Lord Hamilton within twelve months of his death and without consideration, was property deemed to pass on his death under section 2(1)(c) of the Finance Act 1894 and thus liable for estate duty. As the property was settled under the marriage contract, it was also liable for settlement estate duty under section 5(1) of the Act.

Court Disposition

Defences repelled; decree granted for estate duty and settlement estate duty on the £5000 bond; defenders ordained to lodge an account; expenses awarded to the Crown.

Orders

  • Defenders to lodge an account of the estate.
  • Estate duty and settlement estate duty to be paid on the £5000 bond.