An aristocratic family with ties to royalty has successfully challenged an inheritance tax error that could have forced them to break up their historic estate. The Fortescue family, based at the Boconnoc Estate in Cornwall and descended from the 19th-century prime minister who abolished slavery in Britain, faced a £1.2 million tax bill due to a procedural mistake.
Historic Estate at Risk
The Boconnoc Estate, which served as a refuge for both Charles I and Charles II, was purchased by the family in 1717 using proceeds from the sale of the famous Pitt Diamond. In 2000, Elizabeth Fortescue and her husband Anthony began a 12-year, multimillion-pound renovation to restore the manor house and transform it into a luxury wedding venue. After Anthony's death in 2015, Elizabeth sought to secure the estate for her daughter Clare by releasing her life interest in the trusts holding the properties, valued at around £4.4 million, to minimize inheritance tax.
The Mistake
Despite receiving correct tax planning advice, the process Elizabeth followed was flawed. The error left the family, described as 'property rich but cash poor,' facing a £1.2 million tax bill that could have forced the sale of properties. The mistake occurred after the death of High Sheriff Mr. Fortescue, who was found shot on the estate in 2015. An inquest recorded an open verdict due to his history of psychotic depression.
Court Ruling
Elizabeth's barrister, Oliver Conolly, argued that the error was a clear mistake, not tax avoidance. Deputy Master Joanna Lampert ruled that the mistake created 'an unintended tax consequence' and would be 'unconscionable' not to rectify. She ordered the deeds of release to be set aside, allowing the estate to remain intact. Clare Fortescue and the trustees did not oppose the ruling.
Family Legacy
The Fortescues are descendants of William Wyndham, Lord Grenville, who as prime minister abolished the slave trade in 1807. The Grade-II listed Boconnoc House was built in the 18th century by Thomas 'Diamond' Pitt using proceeds from the sale of a 140-carat diamond, now in the Louvre. The estate, dating back to the Domesday Book, includes Cornwall's largest landscaped deer park and has won restoration awards.
