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Chapter TSEM9720

Document Cited authorities 1 Cited in Related
Vincent
Published date02 May 2016
Record NumberTSEM9720
CourtHM Revenue & Customs
IssuerHM Revenue & Customs

To establish an interest under a constructive trust, a claimant must show by evidence that at the time of the purchase there was an agreement or ‘common intention’ that the beneficial interests should not follow the legal interest. For example, prior to acquisition, A and B agree that property is to be held by them in a certain way. It is to be held in A’s name, but A and B are to have equal beneficial interests.

The agreement can be express or implied by conduct. For it to be express there must have been discussions between the parties even if these discussions were ‘imperfectly remembered’ and the terms of the arrangement imprecise. It is normal to look for evidence of an agreement before considering the conduct of the parties. Lloyds Bank v Rosset, [1991] 1 A.C 107 at 132 E-F:

‘The first and fundamental question which must always be resolved is whether, independently of any inference to be drawn from the conduct of the...

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