19 August 2020

HMRC v Parry & Ors; (SC)

This is the judgment of the Supreme Court in Parry. The case addresses fundamental aspects of inheritance tax and in particular section 10 (the commerciality defence), and its interaction with s 268 (associated operations). The case also confirms the scope of section 3(3) (transfers of value by omission). The Court reached the same result as the First-tier Tribunal so that the executors won the section 10 and s 268 issue and HMRC won the section 3(3) issue.  However, the analysis and reasoning of the Supreme Court is different. The issues arose in the context of a transfer made by Mrs Staveley between two registered pensions shortly before her death.

Elizabeth Wilson appeared for HMRC.

The judgment can be viewed here.