Stow v Stow
16th March 2008
[2008] All ER (D) 218 (Mar); [2008] EWHC 495 (Ch); 14 March 2008; Chancery Division; Warren J
Assets were settled by A but the Revenue contended that the settlement was a sham and the assets had been provided by D, who had died and was the settlor for tax purposes. The Revenue issued notices of determination in respect of the pre-settlement ownership of the settled assets and the trustees appealed against it. Because of potential claims against the estate, the trustees of the settlement issued proceedings seeking a declaration as to ownership. The Revenue sought to stay the proceedings pending determination of the tax appeal.
It was held that on the facts the balance was in favour of the continuation of the action for declaratory relief. All relevant parties were before the court and the outcome would be binding on the Revenue. The application for a stay was dismissed.
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