08 Nov 2019

Inheritance Tax - Farmhouse granted agricultural property relief, despite limited farming activity

The First-tier Tax Tribunal has granted agricultural property relief on a Lancashire farmer's farmhouse and outbuildings, despite HMRC’s attempt to deny it because he had nothing but a vegetable patch and some grazing land that he rented out. The tribunal took the view that the business was a working farm and not just the holding of investments (Charnley v HMRC, 2019 UKFTT 0650 TC).
04 Jun 2019

Matrimonial home bought with inherited money was joint asset to be sold for equal shares

The England and Wales Court of Appeal has struck out part of a financial remedy order that awarded a Mrs Crowther the former matrimonial home, which was bought entirely from the inheritance that she had received after her parents' death. She had argued that if her ex-husband wanted to live independently he could apply for a council house or claim housing benefit, and so he did not need any capital from the GBP200,000, mortgage-free house.
13 May 2019

Trustee of orphan's legacy frittered away his inheritance

A woman who spent GBP60,000 from a trust set up for the child of her deceased friends has been jailed for two years. Melaney Watford was made a trustee and legal guardian for the 17-year-old orphan in 2015, after his parents died leaving him a GBP125,000 lump sum, plus GBP200 per month. Watford, of Mitcham, south London, used the trust fund to pay her own household expenses and now cannot repay any more than GBP1,500.
06 Mar 2019

MATRIMONIAL: Family trusts are not a soft target for litigants, says judge

Family law experts discuss the judgment in Daga v Bangur handed down at the end of last year, of great interest to trustees who are caught up in financial proceedings on a divorce. Holman J dismissed the husband's claims on assets of GBP17.5 million in two discretionary trust funds, of which the wife was the settlor and a beneficiary, noting that the trustees were highly unlikely to make funds available to benefit the husband even if ordered to do so.
14 Jan 2019

Implications of Martin case on company valuations

Expert comment is appearing on the important matrimonial case of Martin v Martin (2018 EWCA Civ 2866), in which the England Wales Court of Appeal had to value shares in a private company founded by one of the spouses before they cohabited.
11 Jan 2019

Cashing in customer loyalty points after death

The Independent has done some research on various retailers' policies on dealing with loyalty points accrued by deceased customers. It notes that British consumers accumulate an average of GBP122 each year, making a potentially significant addition to their estate - if they can be realised, because not all retailers allow their customers to bequeath their points.