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Who pays the tax?

11 September 2012
Issue: 4370 / Categories: Tax cases , Inheritance Tax
Scarfe and another v Matthews and others, Chancery Division

BM died in November 2010. He was survived by his wife their three children and a son from another relationship.

He had been separated from his wife for nearly 30 years by the time of his death although they had never divorced.

He lived with another woman for around 20 years in England and in a villa in France. Among his bequests BM left the villa to his partner and stated his executors should pay all tax arising on his estate including French tax.

He bequeathed the villa outright in the hope his children who under French law were entitled to 75% of the property on his death would not exercise their rights. In a letter he explained the three children from his marriage were well provided for.

The children chose to claim their share of the villa. An...

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