This case was the second in a series of decisions involving Tony Vandervell's trusts and his tax liability.

The first was Vandervell v Inland Revenue Commissioners,[1] which concerned whether an oral instruction to transfer an equitable interest in shares complied with the writing requirement under Law of Property Act 1925, section 53(1)(c), and so whether receipt of dividends was subject to tax.

The third was Re Vandervell Trustees Ltd (No 2),[2] which concerned whether Vandervell could be taxed on dividend income (as beneficiary of a resulting trust) if the exercise of an option had validly transferred the beneficial interest in that income to another trust (of which he was not a beneficiary).

The assessments were made on the basis that the shares on which the dividends were paid were held by the trustees on a resulting trust in favour of Mr. Vandervell.

As respects any ruling by the court upon questions of law involved, the special commissioners would have to follow it, but it would be open to the commissioners of Inland Revenue (whom I will call 'the board') to appeal by way of case stated and to carry that appeal to an appellate court which might not be bound by the ruling of the court in which the proceedings between the executors and the trustees terminated.The House of Lords held the court had no jurisdiction under R.S.C., Order 15, regulation 6(2), to order that the Inland Revenue Commissioners would be added as a party to the proceedings, so that it could be determined if dividends belonged to the executors (which would mattered for tax liability) and the decision would be binding on the commissioners.