Friday Law Report: Accountant's Advice on Liability to Tax on Gift Transaction Was Not Negligent ; 15 November 2002 Grimm V Newman and Another ([2002] EWCA Civ 1621) Court of Appeal, Civil Division (Sir Andrew Morritt, Vice- Chancellor, Lord Justice Potter and Lord Justice Carnwath) 7 November 2002

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A CHARTERED accountant was not negligent in advising the claimant (who was domiciled in the United States but resident in England) that he might without adverse United Kingdom tax consequences give to his then intended wife some of his investments situated in the US, which represented foreign emoluments which would be taxable in the UK under Schedule E Case III if they were remitted to the UK, in order to enable her to pay for a half-interest in a house in the UK to be acquired by them both.

The Court of Appeal allowed the defendant chartered accountants' appeal against a decision that they had given negligent tax advice to the claimant.

The claimant was …