Laceys Solicitors has won a landmark High Court victory against the taxman – saving its client a substantial amount in death duties.
Laceys partner Kate Mansfield, a leading local expert in complex tax cases, successfully helped a widow defend her estate from HM Revenue & Customs following the death of her husband.
The case of the Executors of the Estate of Ronald Griffiths vs Trustees of Griffiths was heard in the Chancery Division of the High Court.
It centered on trusts designed to minimise the impact of Capital Gains Tax and Inheritance Tax – notably the ‘seven year rule’ on whether or not Inheritance Tax can be levied on gifts.
In April 2003, Mr Griffiths had transferred substantial assets to a trust, in the belief that he would live for at least another seven years.
Had he survived beyond April 2010, these gifts would not be liable to Inheritance Tax under the Potentially Exempt Transfers (PET) rule.
But in 2004 Mr Griffiths was diagnosed with lung cancer and died in April 2005. As he died within the seven-year PET limit, this led to a large Inheritance Tax bill.
“Had Mr Griffiths known that he had fatal cancer he would not have made the gifts,” said Ms Mansfield.
“Normally if you enter into a complicated tax scheme which – for one reason or another – does not work, the court and HM Revenue & Customs are unlikely to have any sympathy.
“Defeats for the Revenue are infrequent and if it loses at first instance, it usually appeals but has not done so in this case – this was a win against the odds.”
But she warned: “This does not mean that you can undo every gift or tax scheme that turns out to be a mistake.
“It applies only where facts unknown to you at the time of donation make the gift ineffective for tax purposes. It does not apply where some subsequent event or fact makes the gift ineffective,” she added.
For further information, contact Kate Mansfield, Laceys Solicitors, 01202 755981
Date added: June 3 2008
New Associates
The Partners are delighted to announce that John Munro and Sam Freeman have been appointed as Associates of Laceys
Date added: March 25 2008
£100,000 compensation win for Excelsior Coaches from BT
Laceys has helped Excelsior Coaches win a legal battle against BT for £100,000 compensation and costs. The Bournemouth-based company had suffered a huge loss of business after telephone lines were left out of order for in excess of ten days. Over three periods dating back as far as 2005, Excelsior was unable to receive any inbound calls on all its six lines - and customers ringing in were getting a 'number unobtainable' message.
As Excelsior's corporate solicitors, we handled the legal action for compensation for loss of profits, headed up by our Mark Timberlake. Initially Excelsior approached BT through its complaints department - but after six months was offered just £400 compensation. Excelsior's MD Kathy Tilbury said: "That wasn't acceptable so we pursued a legal claim for loss of business. Smaller companies often find it technically difficult, expensive and time-consuming to stand up for their rights against a large supplier which has provided poor levels of service or goods sold not fit for purpose. At the end of the day if the supplier doesn't listen or admit its failings there is little choice for the small operator but to either walk away or start legal proceedings. We had worked with Laceys for some time as our company solicitors. After handling previous litigation for us we had every confidence in their ability to push this case through."
The compensation figure was determined by independent accountants after investigating the effect on Excelsior's coach touring business, corporate contracts and private hire business. Excelsior was paying for BT's highest level of maintenance - the Total Care package - which guaranteed an all-year-round four-hour response - so it expected full support. The problem had been caused by BT processing a 'dummy' order that moved the six telephone numbers on to a set of non-existent digital lines. Laceys had to obtain court orders and further penal orders to compel BT to disclose documents that revealed what the problem had been.
"It seemed like obstacles were put in our way by BT at every opportunity," said Kathy, "even the fault documentation was just computer printouts that needed interpreting. BT's defence was close to being thrown out by the court because of continued breaches of court orders. Big companies routinely ignore court protocol and court orders - knowing that each time the little guy has to go back to court to progress matters, adding to the time and costs involved."
The case doesn't open the doors for similar claims from companies as it was settled in the nick of time outside of court - so a precedent was not set. There were risks to Excelsior throughout the case because BT was obviously determined to fight it all the way, which could have cost Excelsior a lot of money. It took a lot of courage to see it through as it's always difficult to prove loss of profit. All along BT was relying on its 'limitation of liability' contract clauses which say its pay-out in this kind of case is capped to certain figures - which we maintained was an unfair contract term and BT didn't eventually produce any evidence to dispute that.
Excelsior Coaches - one of the main sponsors of the forthcoming Bournemouth Air Festival - operates a fleet of 21 coaches and four minibuses, with three new coaches joining the fleet in mid-March and an additional three executive coaches joining early April. The company has seen considerable growth in the past 18 months and is on track this year to achieve a turnover of £4 million.
Picture: Excelsior Coaches MD Kathy Tilbury (left) with Mark Timberlake of Laceys Solicitors.
Date added: March 24 2008
Laceys welcomes new Assistant Solicitor
Nick Dancer to our Commercial Property and Residential Conveyancing Departments.
Nick completed his Training Contract with Laceys and qualified in January 2008.
Date added: March 24 2008
Laceys welcomes new Assistant Solicitor
Jason Smith who specialises in Residential Conveyancing and Lease Extensions, joined Laceys in January 2008.
Date added: October 19 2007
Laceys' Challenge Cup Tournament 2007
We held the second annual 5-a-side Challenge Tournament in aid of local charity "The Crumbs Project" in September 2007.
Eight teams were competing for the coveted silverware of the Laceys' Challenge Cup and the Laceys Challenge Plate in a hotly contested and thoroughly enjoyable day of football.
In a re-run of last year's Cup final, Mitchells Estate Agents were victorious for the second year running after beating Mazars in the final.
Laceys own team had a creditable day, finishing top of their league and losing out on a place in the final after finishing second best in a closely contested semi-final against the eventual cup winners.
Royal Mail beat Grant Thornton in a sudden death penalty shootout which decided the final of the Challenge Plate, capping a consistent run of performances throughout the day.
The day proved to be a resounding success with over £700 being raised for Crumbs. If you would like details about next year's tournament please contact n.dancer@laceyssolicitors.co.uk
Date added: October 19 2007
Laceys welcomes new Assistant Solicitor
We are pleased to welcome Beverley Randall to our Residential Conveyancing Department. Beverley completed her Training Contract with us and qualified in April 2007
Date added: March 31 2007
New Consultant
We are delighted to report that a new Consultant has joined the firm.
Brian Jones is an expert in the complexities of Landlord and Tenant Law.
Brian was formerly head of Landlord and Tenant Litigation at both Shoosmiths and Pye-Smiths and has written and lectured extensively on such matters.
Date added: March 31 2007
Football and Netball Teams
Laceys have both a 5-a-side football team and a netball team. If you have either and would like to suggest a game then please contact us.
The firm's first Charity Football Challenge involving ten Companies from around Dorset proved to be a resounding success.
Two leagues of five teams competed for the Challenge Cup with the teams coming third and fourth battling it out for the Challenge Plate.
Laceys' new trainee, David Audis worked tirelessly to finish the tournament as the firm's top goal scorer. Meanwhile,in goal, solicitor Daniel Stanton pulled off save after save to keep the team's chances of the final Challenge Plate win a reality.
Solicitor Sam Freeman led the team to a 3-0 victory in the Challenge Plate Final.
However the overall winners on the day were the charity CRUMBS because Laceys managed to raise £850 for them.
Photo shows from left to right Yasir Derwish, David Audis, Goalie Daniel Stanton, Captain Sam Freeman and Nick Dancer
February 2006 -- Stephanie Gates who had trained with us, qualified as a solicitor in February and joined our Private Client Department
Date added: July 4 2006
Mencap support
February 2006 -- Laceys’ solicitor Daniel Stanton embarked on a 500km cycle ride across Vietnam and Cambodia to raise funds for Mencap
Date added: July 4 2006
New solicitor
September 2005 -- Sam Freeman joined the firm in September 2005 as an Assistant Solicitor in the Commercial and Corporate Department
Photo shows Senior Partner John Calver welcoming new Solicitor
Sam Freeman
Date added: July 4 2006
Mencap Quiz Night
2005 -- Daniel Stanton organised a quiz night in November at the Royal Motor Yacht Club in Sandbanks. A total of £939 was raised for Mencap
