Lord Advocate v. Watherston's Trustees [1901] ScotLR 38_467 (05 March 1901)

Lord Advocate v. Watherston's Trustees [1901] ScotLR 38_467 (05 March 1901)

Where a compromise agreement provides that testamentary writings are to be construed as a valid will bequeathing specified legacies free of duty, section 21 of the Legacy Duty Act 1796 applies to exempt from further duty the sums paid as legacy duty, even if the legacies are reduced in amount; the legatees take under the will as construed, not under the compromise itself, and the Crown cannot claim duty on the sums applied in payment of legacy duty.

Citation
[1901] ScotLR 38_467
Parties
Pursuer: Lord Advocate; Defender: Watherston's Trustees (James Balfour-Kinnear, W.S., and another)
Jurisdiction
Scotland
Judgment Date
05 March 1901
Procedural Posture
Exchequer Cause (revenue) / Reclaiming Motion (appeal) From Lord Ordinary's Interlocutor
Outcome
Action dismissed; interlocutor of Lord Ordinary recalled; defenders entitled to expenses.
Legal Topics
Legacy Duty, Interpretation of Testamentary Instruments, Compromise Agreements, Application of Legacy Duty Act 1796
Revenue Law Trusts and Estates Legacy Duty Interpretation of Testamentary Instruments Compromise Agreements Application of Legacy Duty Act 1796

Case Brief

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Parties

Lord Advocate

Pursuer

Watherston's Trustees (James Balfour-Kinnear, W.S., and another)

Defender

Procedural Posture

Exchequer Cause (revenue) / Reclaiming Motion (appeal) From Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Whether legacy duty is chargeable on sums applied in payment of legacy duty where legacies are declared free of duty under a will or compromise agreement
  2. 2 Whether section 21 or section 23 of the Legacy Duty Act 1796 applies to legacies paid under a compromise agreement reducing the amount of legacies but declaring them free of duty

Ratio Decidendi

Where a compromise agreement provides that testamentary writings are to be construed as a valid will bequeathing specified legacies free of duty, section 21 of the Legacy Duty Act 1796 applies to exempt from further duty the sums paid as legacy duty, even if the legacies are reduced in amount; the legatees take under the will as construed, not under the compromise itself, and the Crown cannot claim duty on the sums applied in payment of legacy duty.

Court Disposition

Action dismissed; interlocutor of Lord Ordinary recalled; defenders entitled to expenses.

Orders

  • Interlocutor of Lord Ordinary recalled.
  • Action dismissed in respect of the tender by defenders.