The rule of Hastings-Bass and the law of mistake have both been used to escape unintended outcomes but have differing legal consequences. Elspeth Talbot Rice QC and Adam Cloherty illustrate their differences and outline how HMRC is becoming more involved in such cases
The so-called ‘rule in Re Hastings-Bass‘ has become a workhorse for setting aside mistaken trustee decisions. It was memorably described by Lord Neuberger at last year’s Chancery Bar Association conference as a “magical morning-after pill [for] trustees suffering post-transaction remorse” and has very recently been described by Justice Norris in the following terms:
