Banks v Revenue & Customs (INHERITANCE TAX : Human rights) [2018] UKFTT 617 (TC) (15 October 2018)

Banks v Revenue & Customs (INHERITANCE TAX : Human rights) [2018] UKFTT 617 (TC) (15 October 2018)

The Tribunal held that the application of section 24 IHTA to deny inheritance tax exemption for donations to UKIP constituted differential treatment on the grounds of political opinion within Article 14 ECHR, but that the differential treatment was objectively justified. The conditions for exemption pursued a legitimate aim and struck a fair balance, given the wide margin of appreciation in tax matters and the need for clear, objective criteria. There was no breach of ECHR or EU law.

Citation
[2018] UKFTT 617
Parties
Appellant: Arron Banks; Respondents: The Commissioners for Her Majesty’s Revenue and Customs (HMRC)
Jurisdiction
United Kingdom
Judgment Date
15 October 2018
Procedural Posture
Tax Appeal / First Tier Tribunal (tax Chamber) Substantive Decision
Outcome
Appeal dismissed
Legal Topics
Inheritance Tax, Political Donations, Discrimination, Article 14 ECHR, Article 1 Protocol 1 ECHR, Human Rights Act 1998, EU Law Compliance
Tax Law Human Rights Law European Union Law Inheritance Tax Political Donations Discrimination Article 14 ECHR Article 1 Protocol 1 ECHR +2 more

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Parties

Arron Banks

Appellant

The Commissioners for Her Majesty’s Revenue and Customs (HMRC)

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal (tax Chamber) Substantive Decision

Legal Issues

  1. 1 Whether donations to UKIP by Mr Banks qualify for exemption from inheritance tax under section 24 Inheritance Tax Act 1984
  2. 2 Whether the application of section 24 IHTA constitutes discrimination contrary to Article 14 ECHR together with Article 1 Protocol 1 ECHR
  3. 3 Whether section 24 IHTA breaches EU law obligations

Ratio Decidendi

The Tribunal held that the application of section 24 IHTA to deny inheritance tax exemption for donations to UKIP constituted differential treatment on the grounds of political opinion within Article 14 ECHR, but that the differential treatment was objectively justified. The conditions for exemption pursued a legitimate aim and struck a fair balance, given the wide margin of appreciation in tax matters and the need for clear, objective criteria. There was no breach of ECHR or EU law.

Court Disposition

Appeal dismissed

Orders

  • The appeal by Mr Arron Banks is dismissed.
  • The assessment to inheritance tax in the amount of £162,945.34 stands.