Spes successionis over baronetcy and trust income was not a contingent interest or transferable property.

A bare expectancy of succeeding to a baronetcy and the associated trust income was held to be spes successionis, not a present enforceable right. The court noted that the right to enjoy the income was not independently created in favour of the assessee but arose only as an incident of succession, and until the title holder died and the required names were adopted, no present estate or interest existed in the trust property. Such an expectancy was not a contingent interest and could not be treated as transferable property.

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Issues: Whether the assessee's prospect of becoming a Baronet on the death of the present Baronet was a spes successionis.

Analysis: The right to enjoy the income of the trust was not independently created in favour of any individual, but was an incident of succession to the Baronetcy. Until the present holder of the title died, and subject also to the requirement of adopting the prescribed names, the assessee had no present estate or interest in the trust property. The mere possibility of succeeding to the title and the consequential income from the trust was only an expectation of succession and not a present enforceable right. Such an expectancy does not amount to a contingent interest and cannot be treated as transferable property.

Conclusion: The assessee's prospect of becoming a Baronet was only a spes successionis and not a contingent interest.

Final Conclusion: The reference was answered against the Revenue and the assessee's prospective right was held not to be includible as a transferable or contingent interest in the trust income.

Ratio Decidendi: A bare expectancy of succeeding to a title and the attendant benefit is not property and remains spes successionis unless and until a present enforceable interest comes into existence.

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