Parinv (Hatfield) Ltd v Commissioners of Inland Revenue

JurisdictionEngland & Wales
Judgment Date04 December 1998
Date04 December 1998
CourtCourt of Appeal (Civil Division)

Court of Appeal

Before Lord Justice Roch, Lord Justice Millett and Sir John Balcombe

Parinv (Hatfield) Ltd
Inland Revenue Commissioners
Transaction attracts stamp duty

Transactions executed outside the United Kingdom for the sale of commercial property that consisted of a declaration of trust by the vendor in favour of the purchaser and followed by a transfer of the legal estate in the property in the United Kingdom, did not avoid payment of stamp duty.

It was payable on the transfer and was to be assessed by reference to the purchase price recited in the declaration of trust as having been paid to the vendor. The evidence as to the price was not inadmissible merely because it was contained in an instrument that had remained unstamped.

The Court of Appeal so held dismissing an appeal by way of case stated brought by the purchaser, Bishops Square Ltd, formerly Parinv (Hatfield) Ltd, from the decision of Mr Justice Lindsay on May 23, 1996, ((1996) STC 933) upholding a determination by the Commissioners of Inland Revenue and assessing the duty chargeable on the transfer at £372,230.

Mr Patrick Soares for the purchaser; Mr Michael Furness for the Crown.

LORD JUSTICE MILLETT said that in December 1993 the purchaser agreed to purchase the equitable interest in land at Bishops Square, Hatfield, for £37,223,000.

Completion of the purchase took place on June 30, 1994 by two documents: first a declaration of trust executed by the vendor in favour of the purchaser which recited that the purchase price had been paid to him, and second, the transfer of the property to the purchaser.

The contract for sale and the declaration of trust were executed and retained outside the United Kingdom. The transfer was delivered to the Revenue for adjudication together with photocopies of the declaration of trust and contract of sale. The only relevant fact which could not be ascertained from the recitals to the transfer was the amount of the consideration payable for the sale. The purchaser claimed that the transfer was stampable at 50p. The Revenue assessed duty at £372,230.

Section 1 of the 1891 Act provided for stamp duty to be charged on instruments of "conveyance or transfer on sale". Sections 54 and 59(1) defined such instruments as including contracts for the sale of any equitable interest in any property.

Once the commissioners were satisfied that they had the information necessary to enable them to assess the duty (see sections 5 and 12 of the Act) they had a...

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10 cases
  • McGuane v Welch
    • United Kingdom
    • Court of Appeal (Civil Division)
    • July 11, 2008
    ... ... & Root McDermott Fabricators Ltd [1996] STC 483 ; Parinv (Hatfield) Ltd v. IRC [1996] STC 933 ... The undertaking ... ...
  • Delta Finance Newco v Commissioners of Inland Revenue
    • United Kingdom
    • Chancery Division
    • November 26, 2002
    ...Trustees v Middleton SC1955 SC 51; 1955 SLT 68 Morris v CW Martin & Sons Ltd ELR[1966] 1 QB 716 Parinv (Hatfield) Ltd v IR Commrs TAX[1998] BTC 8003 Pepper (HMIT) v Hart TAXELR[1992] BTC 591; [1993] AC 593 Pioneer Container, The ELR[1994] 2 AC 324 Ramsay (WT) Ltd v IR Commrs ELR[1982] AC 30......
  • P & O Overseas Holdings Ltd v Rhys Braintree Ltd and Another
    • United Kingdom
    • Court of Appeal (Civil Division)
    • March 12, 2002
    ...Ch.D 10 and of Luxmoore J in Re Spollon and Long's Contract [1936] 1 Ch.713 and the dictum of Millett LJ in Parinv (Hatfield) Ltd v IRC [1998] STC 305, 309. The fact that an unstamped document may be received in evidence if a solicitor gives an undertaking to the court to stamp it thereaft......
  • G A Roe & Sons Ltd v Commissioner of Stamps Attorney General of Belize
    • Caribbean Community
    • Caribbean Court of Justice
    • November 17, 2021
    ...STC 237; Padfield v Minister of Agriculture, Fisheries and Food [1968] AC 997; Parinv (Hatfield) Ltd v Inland Revenue Commissioners [1998] STC 305; PR v Income Tax Commissioner (1959) 2 WIR 149; Shell Canada Ltd v Canada 99 DTC 5669; Spencer v The Commonwealth of Australia (1908) 5 CLR 418......
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