Casting vote decisive

The executors of the former chairman of a company who held 50 per cent of the ordinary share capital appealed against a determination that the lady concerned did not have control and was thus not entitled to 50 per cent business relief on a parcel of freehold land. There was no dispute that 100 per cent was available for the shares being within section 105(1)(bb) Inheritance Tax Act 1984.

However the issue before the tribunal chaired by Mr Theodore Wallace was whether immediately before her death she had control of the company by virtue of her casting vote as chairman and therefore came within the provisions of section 269(1) Inheritance Tax Act 1984. Under Regulation 62 of Table A as chairman of directors Mrs Walker was entitled to a casting vote at general meetings.

The appeal concerned some freehold land...