Case Law

A settlement includes a gift of shares Hood Barrs v IRC 1945 TC 385, a gift of money Thomas v Marshall 1952 TC 178, the surrender of a life interest IRC v Buchanan 1957 TC 365, and a series of non commercial transactions Copeman v Coleman 1939 22 TC 594.

Commercial transactions that have no element of bounty cannot constitute a settlement. Berry v Warnett 1980 STC 504, IRC v Plummer 1979 STC 793, Bulmer v IRC 1966 TC 1, IRC v Leiner 1964 TC 589