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Chapter IHTM28291

Document Cited authorities 3 Cited in Related
Vincent
Published date20 March 2016
Record NumberIHTM28291
CourtHM Revenue & Customs
IssuerHM Revenue & Customs

Until the Contracts (Rights of Third Parties) Act 1999 the general rule was that where a debt was incurred by agreement the debt could only be enforced by the other party to the agreement. But this rule is does not apply where

  • the person to whom payment was to be made (under the agreement) is the personal representative of the other party to the agreement, Beswick v Beswick [1968] AC 58
  • If a deduction was claimed on death and the personal representatives or their professional agents give us an assurance that the sums in question had been paid in full, or will be so paid as they fall due. They must also state that they will tell us if and when any action is taken that leads to a different result. (If the taxpayers did not give this assurance or it was made clear that such an assurance could not be given, you should ask the precise reason for the non-payment), or
  • the disposition under consideration is the payment to the third party.

The Act substantially reformed the rule of ‘privity of contract’ under which persons can only enforce a...

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