Someone recently bought our

students are currently browsing our notes.


Vandervell v IRC

[1967] 2 AC 291

Case summary last updated at 24/02/2020 17:42 by the Oxbridge Notes in-house law team.

Judgement for the case Vandervell v IRC

V wanted to make a donation to X. He was the beneficiary of a trust fund of many shares in company 1. To minimise tax he orally instructed the trustees to transfer legal and beneficial ownership to X, but he incorporated company 2 (a trust company with his children as beneficiaries) which would have an option to buy back the shares at a low cost, with the intention that X, a charity, would simply get money from dividends. HL held that the option was held by company 2 on resulting trust for V, so that he could still be considered to have an interest in the shares and thus had greater tax liability.
Lord Reid: The theoretical basis for resulting trust comes from the need to fill the beneficial vacuum that would result if the beneficial interest wasn’t held by anybody. ``The beneficial interest must belong to or be held for somebody; so if it was not to belong to the donee or be held in trust by him for somebody, it must remain with the donor.'' This cannot explain those cases where there is no beneficial vacuum. If, for example, person A advances money to person B in order for person B to purchase land, then a court may hold that B holds that land on resulting trust for A. But it is not clear that there is any `beneficial vacuum' here. NB no mention of unjust enrichment as theoretical basis for either resulting or constructive trust 

Have you seen Oxbridge Notes' best Trusts and Equity study materials?

Our law notes have been a popular underground sensation for 10 years:

  • Written by Oxford & Cambridge prize-winning graduates
  • Includes copious academic commentary in summary form
  • Concise structure relating cases and statutes into an easy-to-remember whole
  • Covers all major cases for LLB exams
  • Satisfaction guaranteed refund policy
  • Recently updated
Trusts and Equity Notes

Trusts and Equity Notes >>