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Chapter CG65430

Document Cited authorities 1 Cited in Related
Vincent
Published date12 March 2016
Record NumberCG65430
CourtHM Revenue & Customs
IssuerHM Revenue & Customs
TCGA92/S225

The doctrine of proprietary estoppel is very similar to that of constructive trusts. It applies if the legal owner of the property has encouraged another to believe that they will acquire an interest in the property and that other person has acted to their detriment in reliance on that believe. The Courts will act to prevent unconscionable conduct by the legal owner.

Although the doctrines are very similar there are significant differences as far as relief under TCGA92/S225 is concerned. First, a constructive trust is created by the actions of the parties. It does not require intervention by the Courts. By contrast proprietary estoppel requires a Court Order. Second, a constructive trust identifies the true beneficial owner of the property and the size and nature of their interest. Under proprietary estoppel the Courts will make the minimum award necessary to do justice. This gives the Courts greater discretion to make the remedy fit the facts...

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