Lord Advocate v. Earl Of Moray's Trustees [1905] UKHL 839 (04 August 1905)

Lord Advocate v. Earl Of Moray's Trustees [1905] UKHL 839 (04 August 1905)

An heir of entail in possession is a person having a limited interest under the Finance Act 1894, section 9(6). When such an heir pays estate duty, a statutory charge arises automatically on the estate for the amount paid, transmissible to his executors, regardless of whether formal steps were taken to perfect the charge. The executors are thus liable for estate-duty on the instalments paid by the deceased heir.

Citation
[1905] UKHL 839
Parties
Pursuer and Appellant: Lord Advocate; Defenders and Respondents: Earl Of Moray's Trustees
Jurisdiction
United Kingdom
Judgment Date
04 August 1905
Procedural Posture
Appeal / Judgment on Appeal to House of Lords
Outcome
Appeal allowed; interlocutor of the Court of Session reversed with costs.
Legal Topics
Estate Duty, Entail, Statutory Interpretation, Imperial Statute Application to Scotland
Revenue Law Succession Law Property Law Estate Duty Entail Statutory Interpretation Imperial Statute Application to Scotland

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Parties

Lord Advocate

Pursuer and Appellant

Earl Of Moray's Trustees

Defenders and Respondents

Procedural Posture

Appeal / Judgment on Appeal to House of Lords

Legal Issues

  1. 1 Whether an heir of entail in possession is a 'person having a limited interest' under the Finance Act 1894, section 9(6)
  2. 2 Whether executors of a deceased heir of entail are liable for estate-duty on instalments paid by the heir, even if no charge was perfected on the estate

Ratio Decidendi

An heir of entail in possession is a person having a limited interest under the Finance Act 1894, section 9(6). When such an heir pays estate duty, a statutory charge arises automatically on the estate for the amount paid, transmissible to his executors, regardless of whether formal steps were taken to perfect the charge. The executors are thus liable for estate-duty on the instalments paid by the deceased heir.

Court Disposition

Appeal allowed; interlocutor of the Court of Session reversed with costs.

Orders

  • Judgment for the Crown; executors of the deceased heir of entail are liable for estate-duty on instalments paid by him.