Inland Revenue v. Hamilton [1917] ScotLR 163 (12 December 1917)

Inland Revenue v. Hamilton [1917] ScotLR 163 (12 December 1917)

The Court held that 'the first succession under the disposition' in section 58(4) of the Finance (1909–10) Act 1910 refers to the first occasion after the commencement of the Succession Duty Act 1853 when property becomes chargeable with duty under that Act by virtue of the disposition. In this case, the defender's succession in 1910 was the first such dutiable succession, and therefore the increased rate of 10% succession duty applied.

Citation
[1917] ScotLR 163
Parties
Pursuer: Commissioners of Inland Revenue; Defender: Miss Louisa Zaida Hamilton
Jurisdiction
Scotland
Judgment Date
12 December 1917
Procedural Posture
Exchequer Cause / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor
Outcome
Appeal dismissed; interlocutor of Lord Ordinary adhered to.
Legal Topics
Succession Duty, Interpretation of 'first Succession' Under Disposition, Application of Increased Duty Rates Under Finance Act 1910
Taxation Succession Law Succession Duty Interpretation of 'first Succession' Under Disposition Application of Increased Duty Rates Under Finance Act 1910

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Parties

Commissioners of Inland Revenue

Pursuer

Miss Louisa Zaida Hamilton

Defender

Procedural Posture

Exchequer Cause / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Whether the defender's succession was the 'first succession under the disposition' within the meaning of section 58(4) of the Finance (1909–10) Act 1910
  2. 2 Whether the increased rate of succession duty (10%) applied to the defender's succession
  3. 3 Whether the defender succeeded 'by disposition' or 'by devolution of law' under the Succession Duty Act 1853

Ratio Decidendi

The Court held that 'the first succession under the disposition' in section 58(4) of the Finance (1909–10) Act 1910 refers to the first occasion after the commencement of the Succession Duty Act 1853 when property becomes chargeable with duty under that Act by virtue of the disposition. In this case, the defender's succession in 1910 was the first such dutiable succession, and therefore the increased rate of 10% succession duty applied.

Court Disposition

Appeal dismissed; interlocutor of Lord Ordinary adhered to.

Orders

  • Defender ordained to deliver an account of her succession to the Commissioners of Inland Revenue.
  • Defender liable to pay succession duty at the rate of 10% in respect of the lands and estates.