Dreyfus revived: Routier and an uncharitable interpretation of section 23 IHTA 1984

Arguably, Routier and other v Commissioners for Her Majesty's Revenue and Customs [2014] EWHC 3010 (Ch) should not have resulted in litigation. It should simply have been a generous gift to the elderly of the Parish of St Ouen, Jersey, and a grateful but understated message of thanks from the parish constable. Unfortunately for the parish, H.M.Revenue and Customs (HMRC) disagreed that the gift qualified for the inheritance tax (IHT) exemption in section 23 Inheritance Tax Act 1984 (IHTA 1984; all statutory references are to this Act, save as mentioned), and claimed around £600,000 of the gift in tax. The resultant first instance judgment by Mrs Justice Rose in the High Court would appear to have set a regrettable precedent regarding the scope of IHT relief on gifts to charitable trusts, which might have a wide impact unless the outcome of the case is successfully overturned on appeal.