On appeal from: [2017] EWCA Civ 1584

The issue in this appeal was whether a movement of capital between the United Kingdom and Jersey should be regarded as an internal transaction taking place within a single member state for the purposes of article 56 of the Treaty Establishing the European Community; and if not, whether the refusal of relief under section 23 in respect of the gift to the Coulter Trust is justifiable under EU law.

Held: The Supreme Court unanimously allowed the appeal. Lord Reed and Lord Lloyd-Jones gave the judgment, with whom all members of the Court agreed. The Court held that EU rules on the free movement of capital do apply to transfers of capital between the United Kingdom and Jersey, and that the refusal of relief under section 23 is a restriction on that free movement. It held that the restriction of relief from inheritance tax to trusts governed by the law of a part of the United Kingdom could not be justified under EU law.

For judgment, please download: [2019] UKSC 43

For Court’s press summary, please download: Court’s Press Summary

For a non-PDF version of the judgment, please visit: BAILII

To watch the hearing please visit: Supreme Court website (2 April 2019 morning session, 2 April 2019 afternoon session, 3 April 2019 morning session, 3 April 2019 afternoon session)