LEGAL ISSUES

Re Vandevell No (2) Trust 1974

Re Vandevell No (2) Trust 1974

Introduction

Law of Formalities under S.53 (1) (c) LPA 1925

Formalities law shows a number of ad hoc responses to problems of tax considerations. There is simply no real legal development in a reasonable rate. The main purpose of the formal requirements is of the fraud through hidden transactions equitable interest, especially in terms of the measures that have an interest.

Formalities and Resulting Trusts Issues in Light of the Cases

Case of Tony Vandervell

The case of Tony Vandervell is infamous for the individual's plan of evading tax by making a donation to the Royal College of Surgeons and establishing a chair for his name. Tony Vandervell is known as the owner of a Formula One racing team that won 6 races out of the 11 in the season of 1958. Tony Vandervell devised a scheme that would enable him to evade taxes in the United Kingdom. The Vandervell Trust which he owned by instructed verbally to transfer the entire share he held in his company to the trust at the Royal College of Surgeons. In order to make matter favourable for himself, Tony Vandervell also included a buy back clause in the agreement (Gardner, 2011, pp. 159). The reason behind this liability was that since Vandervell had given verbal instruction to his company, the law of the United Kingdom does allow such transfers on mere oral orders.

Grey v IRC 1960 A.C 1

This case shows that the direction of the elected representatives to transfer funds to another substance revealed the detailed rules to be kept secret. This provision is included in the provision of equal interest is the law of Article 53 (1) (c), and the word "principle" has the natural meaning, which is wider than that on page 9 of the Constitution against 1677.The purpose was to determine equitable interest in the shares, the so-called "development " of article. 53(c).

Oughtred v IRC (1958) ch. 375

This was the case in which an oral contract for operation of § 53 (1) (c) have been provided. The Council held the shares to Mrs Oughtred for the rest of his life. In return, some of the actions of his mother, Peter made ??an oral agreement to transfer interest in the rest of their interests. After official transfers, transfer of shares referred to was executed. Transfers to the tax office of stamp duty required for transmission of documents of interest.

The Conflict in Decision Making

When examining the conflict in Vandervell, it is seen that the case was heard in the House of Lord. The House of Lords declared that the clause s53(1)c does not apply in this regard, when a beneficiary authorises his or her trustees, similar to Saunders v Vautier, to transfer of authority another person or organisation or trust. This point was raised in the light of Lord Browne-Wilkinson's disapproval of such terms in the case between Islington LBC.

This was not, however, the reason behind Vandervell's arrest. The point that spelled trouble for Vandervell was ...