Wills

A will had been made which left a gift of the deceased’s unused nil-rate band for inheritance tax purposes to her family with the residuary left to the defendant charity. The executors successfully claimed under s 8A(3) of the Inheritance Tax Act 1984 for the surviving spouse increase in the nil-rate band. A dispute arose between the executors and the charity as to whether, under the terms of the will, the increased nil-rate band increased the value of the legacy to the family. The judge gave an interpretation of the relevant clause of the will that favoured the family. The Court of Appeal, Civil Division, dismissed the charity’s appeal as, on the true construction of the will together with s 8A(3), the increase in the nil-rate band had resulted in an increase in the size of the gift to the family.