5 Stone Buildings members in Supreme Court this week

On Wednesday 15 March, three members of chambers will be involved in cases before the UK Supreme Court.

Penelope Reed QC and Hugh Cumber act for the charities in their appeal in Ilott v. Mitson, the first claim under the Inheritance (Provision for Family and Dependants) Act 1975. Hugh will be at the Supreme Court for judgment in the case at 09.45 on Wednesday 15 March and we will be publishing commentary on the judgment on our website as soon as possible afterwards. Hugh will be recording a video for publication on 15 March.

Joseph Goldsmith is appearing (led by Julian Ghosh QC of Pump Court Tax Chambers) in RFC 2012 plc (in liquidation) (formerly The Rangers Football Club plc) (appellant) v Advocate General for Scotland (Respondent) (Scotland) which is an appeal from the Court of Session in Scotland and which is listed for a two day hearing beginning at 10am on Wednesday 15 March. They are instructed by the Advocate-General for Scotland on behalf of HM Revenue and Customs. The appeal has received wide coverage in the legal and other news media.

The case concerns employee benefit trusts created for executives employed by companies forming part of the group owned by Sir David Murray, together with footballers contracted to Rangers FC. HMRC, which was successful in the Court of Session, contends that payments made to such trusts established for the benefit of the employee’s family constituted a re-direction of earnings and, hence, are taxable in the hands of the employee.

The case also raises interesting issues about the powers of protectors. In each case, the employee in question was appointed protector of his trust and given wide powers which, in HMRC’s contention, enabled him to call for the funds held upon the terms of the trust to be paid to him absolutely.