Case Law

Even if a deed states that certain consideration is due, this is only evidential and can be invalidated by evidence to the contrary. The Revenue Commissioners v Moroney V ITR 589

In AG v Wreford-Brown 1925 2 KB 429 it was held that the value of partial consideration paid should be allowed as a deduction from the incumbrance-free value of the taxable gift or the taxable inheritance.

Legal relationships in family matters are generally not accepted by law. Mackay v Jones 1959 93 ILTR 177

Also in Jones v Padavatton 1961 1 WLR 328 and Balfour v Balfour 1919 2 KB 571 there was a presumption against contractual relations within the family.

The Tax Appeals Commissioner dismissed the taxpayer's claim that they had given consideration for a gift by previously allowing the donor to live rent free in their deceased parents’ house and by previously agreeing to take a reduced inheritance so that the donor could inherit more. 04TACD2016, 03TACD2016