Routier and another v Revenue and Customs Commissioners

Inheritance tax – Exemptions and relief. The Court of Appeal, Civil Division, held that the 'second limb' of the definition of property which was given to charities, pursuant to s 23(6) of the Inheritance Tax Act 1984, included the limitation that the trust had to be governed by United Kingdom law and subject to the jurisdiction of the UK courts. In the circumstances, the respondent Revenue and Customs Commissioners' determination that executors of C were subject to inheritance tax of around £600,000 would stand. However, the court invited the parties to propose directions for the second part of the executors' appeal, which would be heard separately, and which concerned whether that construction of s 23 constituted an unlawful restriction on the free movement of capital, within the meaning of art 63 of the Treaty on the Functioning of the European Union.

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