Arabella Murphy (Maurice Turnor Gardner) considers the judgment in Bainbridge, where an application to rescind mistaken transfers of farmland to a trust was complicated by the fact that some of the land had been sold.
In Bainbridge v Bainbridge [2016] EWHC 898 (reported in Tax Journal 6 May 2016) the Bainbridges were a father and son who farmed in partnership. On the advice of their solicitors they transferred several pieces of farmland to a discretionary trust. They had been advised (wrongly) that this would not trigger a charge to CGT. Two parcels of land were subsequently sold by the trustees and the proceeds of the sale were used to acquire new farmland (the ‘new land’) and to discharge various tax and partnership liabilities including SDLT due on the purchase of the new land. It was then discovered that the transfer of the...
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Arabella Murphy (Maurice Turnor Gardner) considers the judgment in Bainbridge, where an application to rescind mistaken transfers of farmland to a trust was complicated by the fact that some of the land had been sold.
In Bainbridge v Bainbridge [2016] EWHC 898 (reported in Tax Journal 6 May 2016) the Bainbridges were a father and son who farmed in partnership. On the advice of their solicitors they transferred several pieces of farmland to a discretionary trust. They had been advised (wrongly) that this would not trigger a charge to CGT. Two parcels of land were subsequently sold by the trustees and the proceeds of the sale were used to acquire new farmland (the ‘new land’) and to discharge various tax and partnership liabilities including SDLT due on the purchase of the new land. It was then discovered that the transfer of the...
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