Further advice not due

The claimants were the executors and daughters of the deceased who died during heart surgery.

He had been the managing director of a family company in which the daughters were minority shareholders. Shortly before his operation the entire share capital in the business had been sold in a management buyout.

As a result of his death the proceeds of his share of the sale became liable to inheritance tax.

The daughters claimed the defendant firm of accountants had been negligent in proceeding with the buyout when it was aware their father had been in poor health and was due to undergo an operation.

They said the transaction should have been deferred until after the surgery had taken place.

The High Court ruled there was no negligence: it had not been part of the accountancy’s duties with regard to the buyout to advise the family about...