Inland Revenue Commissioners v Executors of the estate of Dr Robert Richards

[1971] 1 All ER 785

(Decision by: Lord Donovan)

Between: Inland Revenue Commissioners v
And: Executors of the estate of Dr Robert Richards

Court:
House of Lords

Judges: Lord Reid
Lord Morris of Borth-Y-Gest
Lord Guest

Lord Donovan

Subject References:
TAXATION
CAPITAL GAINS TAX
ASSESSMENT
Deductions from consideration on sale
Expenditure wholly and exclusively incurred in establishing, preserving or defending title to asset
Executors of estate
Expenditure incurred by executors in obtaining valuations and procuring confirmation of title
Valuations necessary for purpose of satisfying Revenue's claim to estate duty
Satisfying claim an essential step before executors could obtain title by confirmation and deal with assets
Sale of assets realising capital gain
Whether cost of obtaining valuations expenditure wholly and exclusively incurred by executors in establishing title to assets

Legislative References:
Finance Act 1965 - Sch 6, para 4(1)(b)

Hearing date: 4, 5 November 1970
Judgment date: 4 February 1971
Lord Upjohn was also present throughout the hearing of the appeal but he died before speeches were delivered having already prepared his speech in which he dissented from the majority opinions. His speech was accordingly read by Lord Morris of Borth-y-Gest, who also dissented, as part of his own speech.

Decision by:
Lord Donovan

My Lords, I agree with the opinion of my noble and learned friend, Lord Guest, and like him would dismiss this appeal.

Appeal dismissed.

Solicitors: Solicitor of Inland Revenue agent for Solicitor of Inland Revenue, Scotland; Titmuss, Sainer & Webb agents for Steedman, Ramage & Co, Edinburgh (for the respondents).

Schedule 6, para 4(1), is set out at p 788 g and h, post

[1970] SLT 137

[1970] SLT 137

[1970] SLT 137

[1970] SLT at 141

[1970] SLT 137

[1970] SLT at 140

[1970] SLT at 140, 141

[1970] SLT 137

[1970] SLT 137