Gresham Trustees (City's Moiety) v The Commissioners of Inland Revenue
| Jurisdiction | England & Wales |
| Judgment Date | 01 January 1903 |
| Date | 01 January 1903 |
| Court | Court of Appeal |
NO. 236.-
Bodies corporate and unincorporate. - Property and income legally appropriated and applied * * * for the benefit of the public at large, or of any county, shire, borough, or place, or the ratepayers or inhabitants thereof, or in any manner expressly prescribed by Act of Parliament.
Property which, or the income or profits whereof shall be legally appropriated and applied for any charitable purpose or for the promotion of education, literature, science, or the fine arts (48 & 49 Vict., c. 51, s. 11, ss. (2) and (3)).
Construction of Will of Sir Thomas Gresham. - Whether the overplus, if any, after satisfaction of specific trusts belonged to the Corporation absolutely, or was to be held by them for the purpose of a general trust over the whole property.
Held, that as regards the exemption in sub-8. (2) the property other than the Royal Exchange itself was not legally appropriated and applied to the benefit of the public at large, &c., nor did it fall within the words "or in any manner expressly prescribed by Act of "Parliament"; that as regards the exemption in sub-8. (3) the limited trusts referred to in the Will had been properly excluded from the assessment. That the Corporation were beneficial owners of the overplus, and were not bound by any trust or new trust in respect of it, and as equitable owners subject to specified charges obtained no charge on the property for expenditure in re-building and improvements. Further, that they were not entitled to claim as a set-off against an account of annual income sums paid away in respect of past capital expenditure.
This case was originally heard on the 28th November, 1894, when it came before a Divisional Court, consisting of Mr. Justice Vaughan Williams and Mr. Justice Wright. The Appellants (the Gresham Trustees, City's Moiety) were represented by Sir Richard Webster, Q.C., and Sir Edward Clarke, Q.C., Hewitt, with them; Sir Robert Reid, A.G., Q.C., Danckwerts with him appeared on behalf of the Crown as Respondent.
The case came before the Court by way of Petition and Appeal, a copy of which appears below, the claim put forward being that the property vested in the Gresham Trustees (City's Moiety) under the Will of Sir Thomas Gresham was exempt from Corporation Duty under sub-section (2) and (3), section 11, 48 & 49 Vict. c. 51, as being:
Property which or the income or profits whereof shall be "legally appropriated and applied for the benefit of the public "at large or of any county, shire, borough or place or the ratepayers "or inhabitants thereof, or in any manner expressly prescribed "by Act of Parliament.
Or again,
Property which or the income or profits whereof shall be "legally appropriated and applied * * * for any charitable "purpose or for the promotion of education, literature, "science, and the fine arts.
The assessment appealed against was that for the year 1890-91, though reference was made in the appeal to the five preceding years, during which the duty had been paid more or less under protest.
STATEMENT OF GROUNDS OF APPEAL of the Mayor and Commonalty and Citizens of the City of London as Trustees of the Will of Sir Thomas Gresham against assessments of £3.296 14s. for the year 1885-6; £3,874 5s. 2d. for the year 1886-7; £4,236 0s.2d. for the year 1887-8; £4,480 2s. 7d. for the year 1888-9; and £4,759 13s. 8d. for the year 1889-90 purporting to be made under the Act 48 and 49 Vict. c. 51.
1. That the annual value income or profits of the real and personal property belonging to or vested in the said Mayor and Commonalty and Citizens, as the Gresham Trustees, and accruing during the several and respective years for which the above assessments were made, did not amount to the several and respecttive sums named and charged in such assessments.
2. That the several assessments are made on property of the said Trustees which, or the income or profits whereof are exempt from assessment by sub-section 2 of section 11 of the said Act, the same having been legally appropriated and applied for the benefit of the public, at large, or of the County of the City of London, or of the ratepayers or inhabitants of the same, and also in a manner expressly prescribed by Act of Parliament.
3. That the several assessments are made on property of the said Trustees which, or the income or profits whereof, are exempt from assessment by sub-section 3 of section 11 of the said Act, the same having been legally appropriated and applied for charitable purposes, and also for the promotion of education, literature, science or the fine arts.
Dated the 16th May 1890.
J. B. CAMERON CRAWFORD City Solicitor.
This was followed by the presentation of-
THE PETITION.
Sheweth,
1. That in and prior to the year 1566 a Public Bourse or meeting place for Merchants of the City of London as well as for traders mariners and others from all parts of the kingdom and many foreign parts was situated in Lombard Street in the City of London. In the year 1566 the said Bourse on account of its small dimensions became incommodious and insufficient. A piece of land situate between Threadneedle Street and Cornhill was thereupon purchased by the citizens of London by public subscription for the sum of £3,532 and was conveyed by them to Sir Thomas Gresham, Knight thereupon to build a Bourse or place for Merchants to assemble Sir Thomas Gresham thereupon erected upon the said site at his own charge a commodious edifice for the convenience of Merchants of the City of London as well as for traders mariners and others from all parts of the kingdom and foreign parts to meet in.
The same was opened with great ceremony and amidst public rejoicing as a public building by Her Majesty Queen Elizabeth on 23rd January 1570 and she caused the Bourse by Herald and Trumpet to be proclaimed "The Royal Exchange, and so to be called thenceforth and not otherwise."
2. By the Will of the said Sir Thomas Gresham dated the 5th July 1575 the Testator made the following dispositions of his property so far as they concern the matters in question namely: "Concerning all my manors lands tenements and hereditaments "mentioned and contained in one quadrupartite Indenture "made between me the said Sir Thomas Gresham and "Dame Anne my Wife on the one part and Philip Scudamore "Gentleman and Thomas Celey on the other part dated the 20th "May in the 17th year in the reign of our Sovereign Lady Queen "Elizabeth First concerning the buildings in London called "The Royal Exchange and the pawnes and shops cellars vaults "messuages tenements and other whatsoever my hereditaments "parcel or adjoining to the said Royal Exchange I will and "dispose that after the expiration and determination of the particular "uses estates and interest for life and entail thereof "limited in the said Indenture bearing date the twentieth May "I will and dispose that one moiety thereof shall remain and "the use thereof shall be unto the Mayor and Commonalty and "Citizens of London by whatsoever special name or addition the "same Corporation is made or known and to their successors "for the term of 50 years then next ensuing. Upon trust or confidence "and to the intent that they do perform the payments "and other intents in these presents hereafter limited thereof "by them to be done and performed. And the other moiety of "the said Buildings called the Royal Exchange pawn shops "cellars vaults messuages tenements and other my hereditaments "with the appurtenances thereunto adjoining shall remain and "the use thereof shall be to the Wardens and Commonalty of "the Mystery of the Mercers of the City of London viz., to the "Corporate Body and Corporation of the Company of Mercers "in London by whatsoever especial name or addition the same "Corporation is made or known and to their successors for the "term of 50 years next ensuing upon trust and confidence and "to the intent that they do perform the payments and other "intents in these presents hereinafter limited thereof by them "to be done and performed."
By the said Will the Testator further provided as follows:
I will and dispose that after such times as one moiety of the "said Royal Exchange and other premises according to the "intent and meaning of these presents shall come to the said "Mayor and Corporation of the said City and from thence so "long as they and their successors shall by any means or title "have hold or enjoy the same they and their succsssors every "year shall give and distribute to and for the sustentation maintenance "and finding four persons from time to time to be "chosen nominated and appointed by the said Mayor and Commonalty "and Citizens and their successors meet to read the "Lectures of Divinity, Astronomy, Music and Geometry within "mine now dwellinghouse in the Parish of St. Helens in "Bishopsgate Street and St. Peters the Poor in the City of "London (the moiety whereof hereafter in this my last Will is "by me limited and disposed unto the said Mayor and Commonalty "and Citizens of the said City) the sum of £200 of "lawful money of England in manner and form following, vizt. "to every of the said Readers for the time being the sum of £50 "of lawful money of England yearly for the Salaries and "Stipends meet for 4 sufficiently learned to read the said Lectures "the same Stipends and every of them to be paid at 2 usual "terms in the year yearly that is to say at the Feasts of the "Annunciation of St. Mary the Virgin and Saint Michael the "Archangel by even portions to be paid And further that the "said Mayor and Commonalty and Citizens of the said City and "their successors from thenceforward and so long as they and "their successors shall by any means have hold or enjoy the said "moiety before in these presents to them disposed shall give "and distribute the sum of £53 6s. 8d. of lawful money of "England yearly in manner and form following vizt. unto 8 "Almsfolks whom the Mayor and Commonalty and...
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