HMRC v The executors of Lord Howard of Henderskelfe

In HMRC v The executors of Lord Howard of Henderskelfe (A3/2013/1568) the executors of the late Lord Howard had sold a painting 17 years after his death realising a substantial gain over the value of the painting at the time of his death. The Court of Appeal found that the gain was not chargeable to CGT.

The executors argued that the sale of the painting was not liable to CGT as the painting had become a wasting asset (TCGA 1992 ss 44 and 45) since it had been included for exhibition in the open part of Lord Howard’s castle. HMRC contended that even if the painting was ‘plant’ (and therefore a wasting asset) in the hands of the company which managed the business of opening Castle Howard to the public the exemption could not be enjoyed by the executors as they had not been involved in...