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United Kingdom

Jersey Royal Court creates narrow revenue rule exception allowing fiduciaries to pay foreign tax enforceable against estate assets in that jurisdiction; guidance on apportioning between movable and immovable property

Published on: 24 April 2024

Published by a LexisNexis Private Client expert
Legal News
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Article summary

A long-established rule across many legal systems is that courts in one jurisdiction will not enforce another state’s tax demands. This so-called ‘revenue rule’ forms part of Jersey law, reflecting the leading English authority Government of India, Ministry of Finance v Taylor [1955] 1 All ER 292. Recently, however, in Re. Representation of Viberts Executors Limited and Ross Badger [2024] JRC055, the Jersey Court seized the chance to refine and develop that principle in a novel way.

Facts

The matter concerned the worldwide movable and immovable estates of a married, childless couple, anonymised as ‘A’ and ‘B’ in the redacted judgment, who retired to Jersey in 2008. A, a very wealthy US citizen, died in 2021. Her husband, B, a UK citizen, passed away a few weeks after A. By her will, A directed that the residue of her real and personal property located in the United States be transferred to the trustees of an inter vivos trust she had settled in 1988...

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