PT-2024-000461 - [2025] EWHC 2285 (Ch)

Both the claimants and the defendants sought to derive support from their respective positions as to the way in which HMRC treats estates and will trusts for tax purposes. Whilst those submissions may have some relevance to the extent of the indemnity the Rutland Trustees may be entitled to it did not provide me with any assistance in determining whether and when the Rutland Trust came into existence or whether the defendants were Rutland Trustees. It does not change the approach to the legal analysis. Neither does the recent HMRC nil computation for tax filed by JSH.

Conversely the decision that the defendants are the Rutland Trustees and that the Rutland Trust exists may have an impact on how HMRC treat the tax position in relation to both estates and the Rutland Trust. From the defendants’ perspective as Rutland Trustees they may be personally liable for any tax that should have been paid on assets of the Rutland Trust.

At present it appears that Vicki’s estate has filed an IHT 400 which confirmed her interest in the Cash Sum and the Rutland Trustees have filed an IHT100 detailing both the half share in the Property and the Cash Sum. The claimants have also filed an IHT100 which it is suggested did not include the Cash Sum. It will be a matter for the parties and their advisors to consider what if any different approach may now be needed.