EU law applied to a deceased individual’s gift of assets in the UK to trustees in Jersey, and the refusal of relief from inheritance tax on that gift was in breach of EU law.  
 
The deceased died on 9 October 2007. Her will provided for a charitable gift to a trust established under and governed by Jersey law. HM Revenue and Customs (HMRC) determined that the gift to the trust did not fall within the inheritance tax exemption for legacies and gifts to charities (IHTA 1984, s 23); the trust was governed by Jersey law, so did not qualify as a trust for charitable purposes only (within s 23(6)). The High Court ([2014] EWHC 3010 (Ch)) and Court of Appeal ([2014] EWCA Civ 938) dismissed the appellants’ appeal. 
 
The Court of Appeal ([2017] EWCA Civ 1584) subsequently concluded that Jersey was to be treated as a third country for the purposes of article 56 of the EC Treaty. The court also held that