Abigail Wilmore v The Commissioners for HMRC
Decision date: 6 October 2023
Neutral citation: [2023] UKFTT 858 (TC)
Overall AI summary confidence: medium
Short overview
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AI confidence in this short overview: medium
This appeal concerned whether Ms Wilmore transferred her beneficial interest in the jointly purchased property Thornfield before 5 April 2016, so that TCGA s58 would apply. The First-tier Tribunal found that a constructive trust arose from the parties' December 2015 agreement (Ms Wilmore taking Ravenshurst, Mr Cohen Thornfield), meaning the beneficial interest passed in the 2015–16 tax year. The transfer was therefore treated on a no gain/no loss basis under s58 and HMRC’s discovery assessment was unsustainable.
Ratio decidendi
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AI confidence in this ratio decidendi summary: medium
A constructive trust can arise from a common intention/agreement between separated spouses such that equitable title passes when that intention is manifested, even if formal transfer documents or later court Consent Orders are executed subsequently; for tax timing the date of that equitable transfer governs whether s58 TCGA applies.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal observed that variations in the quantum of a lump sum negotiated in divorce proceedings do not, by themselves, show an equitable interest remained untransferred. It also noted that HMRC bears the initial burden on competence/time‑limit issues for discovery assessments, although those points were not argued in the case.