Perils of giving to charity

The appellant Mr Harris as a trustee of the Harris Family Charitable Trust was subject to investigation after donations from his sister and deceased mother were given to the charity.

The gifts arose out of a deed of variation of the will of their late mother and a question emerged as to whether the inheritance tax exemption within FA 1990 s 25 applied.

Section 25(2) states donations to charity by individuals would be exempt of inheritance tax if it takes the form of a payment of a sum of money and neither the donor nor any person connected with him receives a benefit in consequence of making it.

The dispute was therefore whether the donors or the appellant being connected with the donors received a benefit as a...