Whose liability?

Jason Pope worked as a geologist in Angola. He was believed to have been abducted by rebels in 1998; nothing had been heard of him since.

He had taken out a life assurance policy with Equitable Life in 1996; the sum assured was £100 000. His mother was appointed to act on his behalf under power of attorney.

After Mr Pope disappeared Equitable agreed to pay the sum assured plus interest of £36 500. The payments were first paid into Mr Pope's bank account then transferred to his mother and finally in November 2002 into an offshore account in his name.

The mother entered into a deed in 2005 to swear to her son's death and obtain a grant of representation on his estate.

For 2002/03 HMRC assessed the payment of interest to tax holding Mr Pope's parents liable. They appealed claiming...