Case Law

Sudeley v AG 1897 AC 11, Re Smyth 1891 1 Ch 89, and AG v Johnson 1907 2 KB 885 all illustrate the difficulty in determining when a ‘settled residuary estate’ becomes ‘subject to the discretionary trust’ for the purposes of s15(1)(a).

In Revenue Commissioners v Executors and Trustees of the Wills of Jeannie Hammet Irvine Deceased 2005 No 172 R HC it was argued that the date of ascertainment of residue was the date when the property in a will discretionary trust became ‘subject to the discretionary trust’. As such, the 1% annual charge did not apply until this date.