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England and Wales High Court (Chancery Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> Smith & Ors v HM Revenue & Customs [2007] EWHC 2304 (Ch) (16 October 2007) URL: http://www.bailii.org/ew/cases/EWHC/Ch/2007/2304.html Cite as: [2007] STI 2560, [2007] EWHC 2304 (Ch), [2007] BTC 8010, (2007) 157 NLJ 1506, [2008] STC 1649, [2008] WTLR 147, 78 TC 819 |
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CHANCERY DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
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AMANDA CLARE SMITH ANDREW JOHN SMITH MARK VALENTINE SMITH DUNCAN JOHN VINCENT GODFREY |
Appellants |
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- and - |
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COMMISSIONERS FOR HER MAJESTY'S REVENUE AND CUSTOMS |
Respondents |
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Ms Ruth Jordan (instructed by Solicitor's Office, HM Revenue & Customs, East Wing, Somerset House, London W2R 1LB) for the Respondents
Hearing date: 27th July 2007
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Crown Copyright ©
Mr Justice Lightman:
INTRODUCTION
FACTS
"A temporary annuity and an endowment assurance are effected. The sum invested is used to meet the first annual premium for the endowment insurance and to purchase the temporary annuity, which turns your capital into income on an attractive basis. That income is designed to provide the remaining premiums for the endowment assurance policy, which converts the income back into capital."
LAW
"unless it is shown that the purchase of the annuity and the making of the insurance were not associated operations, the person who purchased the annuity shall be treated as having made a transfer of value by a disposition made at the time the benefit of the policy became so vested"
"(b) any two operations of which one is effected with reference to the other, or with a view to enabling the other to be effected or facilitating its being effected."
"Life assurance policies and annuities are regarded as not being affected by the associated operations rule if,
first, the policy was issued on full medical evidence of the assured's health and,
second, it would have been issued on the same terms if the annuity had not been bought."
"Any party to an appeal, if dissatisfied in point of law with the determination of that appeal by the Special Commissioners, may appeal against that determination to the High Court.
The High Court shall hear and determine any question of law arising on an appeal under subsection (1) above and may reverse, affirm or vary the determination appealed against, or remit the matter to the Special Commissioners with the court's opinion on it, or make such order in relation to the matter as the court thinks fit."
SC DECISION
ISSUES ON APPEAL