It may seem very obvious to say that the law is what the law is, and the fact remains that just because something may seem unfair or isn't in accordance with an underlying principle, if it's the law then it will nevertheless stand.
Here is an example from Atkins Hope Solicitors in Croydon for you. In UK law there is a principle that if someone leaves assets on death to a charity then these assets do not make up part of the deceased person's Inheritance Tax (IHT) contribution.
In 2007 a lady who lived in Jersey left a UK estate of about£1.8 million which was to be left to a charity to benefit people in Jersey. There was then a claim made to exempt the assets from IHT.
HM Revenue and Customs (HMRC) stepped in to argue that the fact that the charity concerned was established outside the UK's jurisdiction meant the claim had to be rejected.
This legal battle went all the way to the Court of Appeal, which has ruled in HMRC's favour, triggering an IHT charge of some £600,000.
A further appeal, based on European law against restrictions on the free movement of capital, is now being pursued.
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