Countess Fitzwilliam v Inland Revenue Commissioners

This appeal concerned the tax consequences of a series of arrangements challenged by the revenue. The principal legal questions identified in the material before the court were whether the arrangements constituted a composite transaction within the scope of the Ramsay principle; whether a series of pre-ordained steps should be treated as a single transaction for tax purposes; and whether the "reverter to settlor" exemption applied so that property became treated as having reverted to the settlor.

Key statutory provisions referred to in the material included provisions of the Finance Act 1975 (including sections 19, 20, 24 and 47(1A) and Schedule 5, paragraphs 1, 4 and 5), Finance Act 1976 (sections 86 and 87) and Finance Act 1978 (section 69(7)). The issues framed for decision were (i) whether the settlor became absolutely entitled to property comprised in a settlement, (ii) whether the property comprised in the settlement had its origin in the testator's estate and (iii) whether the testator should be treated as a settlor of the settlement.

Procedural posture: this is a decision of the Appellate Committee of the House of Lords. Further appellate history is not set out in the judgment text supplied.