Whether a bank manager could set off against his tax, the costs of memberships of local clubs and organisation which he was expected to join as a condition of his emplyment. Judges: Lord Evershed MR, Harman KJ Citations: [1961] EWCA Civ 5, [1961] 3 All ER 129, [1961] 1 WLR 1095 Links: Bailii Statutes: Income … Continue reading Brown v Bullock (Inspector of Taxes): CA 26 Jun 1961
A company’s senior employees had been given an option to subscribe for its shares at the then current market price, the option being exercisable at any time within the next ten years. The employees were thus incentivised to increase the company’s prosperity. The option was non-transferable and would expire on the employee’s death or retirement. … Continue reading Abbott v Philbin (Inspector of Taxes): HL 21 Jun 1960
LT TAX – Inheritance Tax – agricultural property relief – agricultural value – agricultural property – farmhouses – whether house occupied by ‘lifestyle’ farmer could be farmhouse – held bid of such person could not represent agricultural value – Inheritance Tax Act 1984 s 115(2) and (3)George Bartlett QC : ‘a farmhouse for the purposes … Continue reading Lloyds TSB Private Banking Plc (personal representative of Rosemary Antrobus deceased) v Inland Revenue (Capital Taxes); Re Cookhill Priory (No 2): LT 10 Oct 2005
HL Income Tax, Schedule D-Property held on short lease and re-let at a rent lower than that payable by lessee-Whether ‘loss ‘can be set against other income chargeable under Schedule D, Case VI – Finance Act, 1927 (17 and 18 Geo. V. c. 10), Section 27 (1); Finance Act, 1940 (3 cfe 4 Geo. VI. … Continue reading Littman v Barron (H M Inspector of Taxes): HL 31 Jul 1952
HL Income Tax, Schedule D – Foreign securities and possessions – Arrears of interest on mortgage bonds of foreign company-Payment of arrears postponed by arrangement and made after bonds had been cancelled and replaced by a promissory note – Whether interest assessable – Income Tax Act, 1918 (8 and 9 Geo. V, c. 40), Schedule … Continue reading Harrison v Lilley: HL 11 Jul 1952
HL Income Tax, Schedule D, and Profits Tax-Trade-Expenses-Payments made under scheme for application of moneys in totalisator fund-Runners’ allowance-Whether payments deductible as expenses in computing profits- Racecourse Betting Act, 1928 (18 and 19 Geo. V, c. 41), Section 3 ; Income Tax Act, 1952 (15 and 16 Geo. VI cfe 1 Eliz. II, c. 10), … Continue reading Young (H M Inspector of Taxes) v Racecourse Betting Control Board; Racecourse Betting Control Board v Young (H M Inspector of Taxes); Inland Revenue v Racecourse Betting Control Board: HL 29 Jul 1959
HL Income Tax, Schedule D – Foreign possessions-Remittances- Loans by bank in United Kingdom transferred from time to time to borrower’s account at branch abroad and satisfied by income receipts there – Income Tax Act 1918 (8 and 9 Geo. V, c. 40), Schedule D, Case V, Rule 2. Citations: [1952] UKHL TC – 33 … Continue reading Inland Revenue v Gordon: HL 26 Mar 1952
HL Income Tax, Schedule D – Excess rents – and royalties – Income Tax Act, 1952 (15 and 16 Geo. VI and 1 Eliz. II, c. 10), Section 175. Citations: [1961] UKHL TC – 39 – 454, 39 TC 454 Links: Bailii Jurisdiction: England and Wales Income Tax Updated: 27 June 2022; Ref: scu.559960
Income Tax, Schedule D – Loss in trade – Dealer in securities – Dividend-stripping – Shares acquired as part of tax avoidance scheme – Whether stock in-trade – Income Tax Act 1952 (15 and 16 Geo. 6 and 1 Eliz. 2 , c. 10), s .341. Citations: [1971] UKHL TC – 47 – 633, 47 … Continue reading Thomson (Inspector of Taxes) v Gurneville Securities Ltd: HL 21 Oct 1971
HL Income tax, Schedule D – Profits tax – Deduction – Oil dealing company – Exclusivity agreement with retailers – Premises leased from retailer and sublet to him – Whether premium for lease paid on capital or revenue account – Income Tax Act 1952 (15 and 16 Geo. 6 and 1 Eliz. 2, c. 10), … Continue reading Regent Oil Co Ltd v Strick (Inspector of Taxes): HL 27 Jul 1965
HL Income tax, Schedule D – Loss in trade – Dealer in shares – Dividendstripping – Forward-stripping – Whether shares acquired as stock-in-trade – Income Tax Act 1952 (15 and 16 Geo. 6 and 1 Eliz. 2, c. 10), s. 341. Citations: [1966] UKHL TC – 43 – 591, [1966] 1 WLR 1402, [1966] 3 … Continue reading Bishop (Inspector of Taxes) v Finsbury Securities Ltd: HL 26 Jul 1966
HL Income Tax, Schedule D – Dealer in securities – Dividend received out of paying company’s capital profit – Whether taxable. Income Tax – Additional assessment-Discovery – Facts known to Inspector at all material times – Appeal settled by agreement after enquiry on material point-Whether additional assessment can be made subsequently – Income Tax Act, … Continue reading Cenlon Finance Co, Ltd v Ellwood (H M Inspector of Taxes) ; Ellwood (H M Inspector of Taxes) v Cenlon Finance Co, Ltd ; Tableau Holdings, Ltd v Williams (H M Inspector of Taxes) ; Williams (H M Inspector of Taxes) v Tableau Holdings, Ltd: HL 1 Mar 1962
Mr Newsom, a practising barrister sought to set off against his income, the expenses of travelling between his home and his chambers in London. The Inspector appealed the decision of the commissioners that he could do so. The rule required that the expense be incurred wholely necessarily and exclusively for the purposes of a trade … Continue reading Newsom v Robertson: ChD 30 Apr 1952
HL Income Tax, Schedule D – Annual payment made to a trading company- Whether trading receipt – Whether recipient entitled to repayment of tax – Income Tax Act, 1952 (15 and 16 Geo. VI and 1 Eliz. II, c. 10), Section 123, Schedule D, Case III. Citations: [1962] UKHL TC – 40 – 550 Links: … Continue reading British Commonwealth International Newsfilm Agency Ltd v Mahany (HM Inspector of Taxes): HL 20 Dec 1962
The court considered the nature of allowable expenses for an investment company: ‘the notion behind this Section may be thought to be that the expenditure is something which if you were looking at the profits and gains under Schedule D would be deductible as a sum of money wholly and exclusive expended for the purpose … Continue reading Norman v Golder (Inspector of Taxes): 1944
Income Tax, Schedule D – Copyright royalties – Payable to executor of author under agreement made in his lifetime – Income Tax Act, 1952 (15 and 16 Geo. VI and 1 Eliz. II, c. 10), Schedule D, Cases III, V and VI. [1958] UKHL TC – 38 – 240, (1958) 37 ATC 347, [1959] AC … Continue reading Carson (H M Inspector of Taxes) v Cheyney’s Executor: HL 25 Nov 1958
The taxpayer, a comic actor, bought silver bullion hoping it would act as a hedge against a possible deflation of the pound. The revenue sought to tax his profits on sale under Schedule D. He argued that the money, being from one transaction, did not arise in the course of trade. The judge had reversed … Continue reading Wisdom v Chamberlain (Inspector of Taxes): CA 8 Nov 1968
The House gave guidance how it would treat an invitation to depart from a previous decision of the House. Such a course was possible, but the direction was not an ‘open sesame’ for a differently constituted committee to prefer their views to those of the committee which determined the decision unanimously or by a majority. … Continue reading Practice Statement (Judicial Precedent): HL 1966
HL Income Tax, Schedule D – Double taxation relief – Tax credit – Whether tax paid – in respect of – income of year of assessment or basis year – Income Tax Act, 1952 (15 and 16 Geo. VI and 1 Eliz. II, c. 10), . .
HL Income Tax, Schedule D – Film actor and producer-Remuneration including right of participation in profits of, or receipts from, particular films-Sums in respect of such participations paid to executors – . .
A company operated a housing scheme for married employees who made transferred from one part of a country to another. Under the scheme an employee might be offered a loan to assist in the purchase of a house and, provided the house was maintained in . .
HL Income Tax, Schedule D – Film actor and producer-Remuneration including right of participation in profits of, or receipts from, particular films-Sums in respect of such participations paid to executors – . .
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The taxpayer, a well known film actor, agreed to work through a company for three years being paid andpound;50 per week. The shares were transferred to his wife and accountant. His father in law set up a andpound;100 settlement for the benefit of his children of which his wife and accountant were the trustees. The … Continue reading Crossland v Hawkins: CA 1961
The court was asked as to a taxpayer’s entitlement to tax allowances under section 314 of the 1952 Act, and whether, for the purposes of the legislation, a transfer by the taxpayer into trust of a farm and the simultaneous grant by the trustees to him of a lease resulted in the whole of the … Continue reading Sargaison v Roberts: ChD 1969
The claimant was disabled, and sought sterilisation because she feared the additional difficulties she would face as a mother. The sterilisation failed. She sought damages. Held: The House having considered the issue in MacFarlane only recently it was inappropriate to change the rules set down in that case. Nothing had been put forward to argue … Continue reading Rees v Darlington Memorial Hospital NHS Trust: HL 16 Oct 2003
The Court considered the interpretation of the sections which applied corporation tax to post-cessation receipts. Companies had received from the Inland Revenue substantial repayments of VAT together with interest. There had been reorganisations of the group, the company which had made the overpayment did not exist, and the payee of the repayment had only later … Continue reading Shop Direct Group v Revenue and Customs: SC 17 Feb 2016
Parish members objected to the building within the church grounds of an education centre. They said that the land was to be used for the purposes of the members of the parish only under a trust deed of 1851. Held: The deed had to be construed in its context at the time. At the time … Continue reading St Mary and St Michael Parish Advisory Company Ltd v The Westminster Roman Catholic Diocese Trustee, Her Majesty’s Attorney Genera and others: ChD 6 Apr 2006
The claimant alleged complicity by the defendant, (now former) Foreign Secretary, in his mistreatment by the US while held in Libya. He also alleged involvement in his unlawful abduction and removal to Libya, from which had had fled for political persecution. The defendants now appealed from rejection of the defendants’ claim to state immunity and … Continue reading Belhaj and Another v Straw and Others: SC 17 Jan 2017
The Court was asked whether an employee’s remuneration is taxable as his or her emoluments or earnings when it is paid to a third party in circumstances in which the employee had no prior entitlement to receive it himself or herself. Held: The company’s appeal failed. The purposive approach to the interpretation of the general … Continue reading RFC 2012 Plc (Formerly The Rangers Football Club Plc) v Advocate General for Scotland: SC 5 Jul 2017
A claim for relief was made by a parent in respect of a child who earned wages; the parent claimed to deduct from those wages the cost of the child travelling to and from work and of his midday meal. Held: The child’s income was chargeable to tax under Schedule E and fell within Sch. … Continue reading Prince v Phillips: 1961
Income Tax, Schedule A – Gravel pit – Whether a new property – Income Tax Act, 1952 (15 and 16 Geo. V I and 1 Eliz. II, c. 10), Section 82, Schedule A , paragraph 2 (b), and Sections 84 and 108 Citations: [1963] UKHL TC – 41 – 172, [1963] 3 WLR 292, [1965] … Continue reading Welford Gravels v De Voil: HL 20 Jun 1963
(The Bahamas) The US government sought the extradition of the appellant from the Bahamas on drugs charges. The warrants were found to be void, and the defendant released unconditionally, when the nmagistrate rejected evidence from an admitted co-conspirator. It was then said thet the respondent had no right of appeal against a grant of habeas … Continue reading Gibson v United States of America: PC 23 Jul 2007
Income Tax, Schedule D – Profits Tax – Capital allowances – Industrial building or structure – Building for screening and packing coal – Whether coal subjected to a process – Whether building used for purpose ancillary to a retail shop – Income Tax Act, 1952 (15 and 16 Geo. VI and 1 Eliz. II, c. … Continue reading Kilmarnock Equitable Co-operative Society Ltd v Inland Revenue Commissioners: SCS 16 Feb 1966
SCIT INHERITANCE TAX – agricultural property relief – freehold house which was owned and occupied by the deceased – agreed that it was a farmhouse – whether it was of a character appropriate to the property – yes – IHTA 1984 s 115(2).Miss Antrobus had lived in a substantial freehold house, surrounded by about 126 … Continue reading Lloyds TSB Bank Plc (Antrobus Deceased) v Inland Revenue (No 1): SCIT 17 Oct 2002
Income tax, Schedule D – D eduction – Farm ing – Maintenance, etc., expenditure on farm house – Whether expenditure for domestic purposes distinct from those of the trade – Income Tax A c t 1952 (15 and 16 Geo. 6 and 1 Eliz. 2, c. 10) 55. 124, 137(6) and (d) and 526(1).The House … Continue reading Inland Revenue Commissioners v Korner: HL 19 Feb 1969
The claimant challenged the forfeiture of its lease by a freeholder which had acquired the registered freehold title but had not yet registered its ownership. The second defendant had forfeited the lease by peacable re-entry for arrears of rent, and created a further lease. Held: The judge was right to hold that, following the transfer, … Continue reading Scribes West Ltd v Relsa Anstalt and others: CA 20 Dec 2004
HL Income Tax – Dividend – stripping-Repayment of tax deducted from dividends claimed by companies resident in the Republic of Ireland – Income Tax Act, 1952 (15 and 16 Geo. VI and 1 Eliz. II, c. 10), Section 349 and Eighteenth Schedule, Part I, Paragraph 1 (a); Finance (No. 2) Act, 1955 (4 and 5 … Continue reading Inland Revenue v Collco Dealings, Ltd ; Inland Revenue v Lucbor Dealings, Ltd: HL 2 Mar 1961
HL Income tax, Schedule D – Excess rents – Case V III rents – Sublease rents – Subletting in breach of covenants in head lease – Payments to head lessor in consideration of subsequent consent – Whether paid as consideration for variation or waiver of lease terms – Income Tax Act 1952 (15 6 16 … Continue reading Banning v Wright: HL 14 Jun 1972
HL Income tax, Schedule D – Profits of trade – Basis of assessment – Change of accounting date – Period included in basis years for two years of assessment – Whether double taxation involved – Income Tax Act 1952 (15 and 16 Geo. 6 and 1 Eliz. 2, c. 10), s. 127. Citations: [1972] UKHL … Continue reading Inland Revenue Commissioners v Helical Bar Ltd: HL 22 Mar 1972
HL Income Tax, Schedule E – Christmas gift voucher – Whether assessable – Income Tax Act, 1952 (15 and 16 Geo. VI and 1 Eliz. II, c. 10), Section 156; Finance Act, 1956 (4 and 5 Eliz. II, c. 54), Second Schedule, Paragraph 1(1).Lord Reid said: ‘There is a wealth of authority on this matter … Continue reading Laidler v Perry: HL 8 Apr 1965
PC (New Zealand) The Crown created a charitable trust for certain Maori people. Upon exhaustion of the purpose, the fund was to revert to the Crown. The trustees appealed a finding of liability to income tax. Held: A charitable trust could co-exist with a non-charitable trust. ‘The distinction is between ends, means and consequences. The … Continue reading Sir Graham Stanley Latimer and others – Trustees for the Crown Forestry Rental Trust v The Commissioner of Inland Revenue: PC 25 Feb 2004
In 2000, the claimant sought damages for sexual abuse from before 1951. The issue was as to whether the limitation law which applied was that as at the date of the incidents, or that which applied as at the date when he would be deemed uner the modern law to have acquired knowledge of the … Continue reading McDonnell v Congregation of Christian Brothers Trustees (Formerly Irish Christian Brothers) and others: HL 4 Dec 2003
The Court was asked whether and in what circumstances a lower court may follow a decision of the Privy Council which has reached a different conclusion from that of the House of Lords (or the Supreme Court or Court of Appeal) on an earlier occasion. Held: The court set out the position in law and … Continue reading Willers v Joyce and Another (Re: Gubay (Deceased) No 2): SC 20 Jul 2016
Income tax – Schedule D, Cases III and VI – Payments of interest and ground rent incurred when property was being developed – Whether capitalised or paid out of profits or gains brought into charge to tax – Income Tax Act 1952 (15 and 16 Geo. 6 and 1 Eliz. 2, c. 10), j. 170.The … Continue reading Fitzleet Estates Ltd v Cherry: HL 9 Nov 1977
The 1889 Act gave statutory undertakers who had incurred expenditure in removing a sunken vessel a right ‘to recover such expenses from the owner of such vessel in a court of summary jurisdiction.’ the undertakers began their action in the High Court, and appealed dismissal of the claim. Held: The appeal failed. Such expenses were … Continue reading Barraclough v Brown: HL 1897
The share owners placed half of the issued shares in the company in trust for the taxpayer, in order to persuade him to continue his involvement in the family company as an active director. The trust provided that the income from the shares should be paid to him for ‘so long as he shall be … Continue reading White v Franklin: CA 1965
The court analysed the circumstances under which additional parties might be joined to an action by a defendant, applying a narrow interpretation. The court considered whether a defendant may be added against the parties’ wishes: ‘There are two views about its scope; an authority can be cited for both. One is that it gives a … Continue reading Amon v Raphael Tuck and Sons Ltd: 1956
Income Tax, Schedule E-Benefit in kind-Director in occupation of company’s house-Expenditure by company on repairs and upkeep in excess of rent- Income Tax Act, 1952 (15 and 16 Geo. VI and 1 Eliz. II, c. 10), Sections 161 and 162. Citations: [1963] UKHL TC – 40 – 630, [1963] AC 557, 40 TC 630 Links: … Continue reading Inland Revenue v Luke: HL 15 Jan 1963
The taxpayers sold their shares in return for loan notes in the form of mixed qualifying (QCB) and non qualifying corporate bonds (Non-QCB) within section 115 of the 1992 Act. Gains on the disposal of QCB would be exempt from CGT. These were then converted to QCBs. The court was asked as to their chargeability … Continue reading Hancock and Another v Revenue and Customs: SC 22 May 2019
Income tax, Schedule D – Capital allowances – Industrial building or structure – Warehouse used for storing goods delivered to purchasers together with some goods not so delivered – Income Tax Act 1952 (15 and 16 Geo. 6 and 1 Eliz. 2, c. 10), 271. [1967] UKHL TC – 44 – 122, 1967 SC (HL) … Continue reading Inland Revenue Commissioners v Saxone Lilley and Skinner (Holdings) Ltd: HL 16 Feb 1967
HL Income tax – Management expenses relief – Interrelation with double taxation relief- ‘the amount of the tax on any sums disbursed as expenses of management’ Income Tax Act 1952 (15 and 16 Geo. 6 and 1 Eliz. 2, c. 10), ss. 350(1) C and 425(1) and Sch. 16, para. 2. [1971] UKHL TC – … Continue reading Shell Petroleum Co v Jones: HL 5 May 1971
Excess Profits Levy – Valuation o f trading stock – Finance Act, 1937 (1 Edw. VIII and 1 Geo. VI, c. 54), Section 20(1) and Fourth Schedule; Finance Act, 1952 (15 and 16 Geo. VI and 1 Eliz. II, c. 33), Section 45(1) and Ninth Schedule. [1965] TR 183, [1965] UKHL TC – 42 – … Continue reading Cyril Lord Ltd v Inland Revenue Commissioners: HL 1965
In each case the local authority sought to recover possession of its own land. In the Lambeth case, they asserted this right as against an overstaying former tenant, and in the Leeds case as against gypsies. In each case the occupiers said that the recovery of possession interfered with their right respect for their family … Continue reading Kay and Another v London Borough of Lambeth and others; Leeds City Council v Price and others and others: HL 8 Mar 2006
Ban on Prisoners talking to Journalists unlawful The two prisoners, serving life sentences for murder, had had their appeals rejected. They continued to protest innocence, and sought to bring their campaigns to public attention through the press, having oral interviews with journalists without undertakings from the journalists not to publish any element of the interview. … Continue reading Regina v Secretary of State for The Home Department Ex Parte Simms: HL 8 Jul 1999
The prosecutor had lead and relied at trial on evidence obtained by compulsory questioning under the 1986 Act. Held: In doing so the prosecutor was acting to give effect to section 433. The decision in Lambert to disallow retrospective effect of Human Rights decisions in appeal cases may have been incorrect, but will be followed. … Continue reading Regina v Kansal (2): HL 29 Nov 2001
There are no degrees of nullity The plaintiffs had owned mining property in Egypt. Their interests were damaged and or sequestrated and they sought compensation from the Respondent Commission. The plaintiffs brought an action for the declaration rejecting their claims was a nullity. The Commission replied that the courts were precluded from considering the question … Continue reading Anisminic Ltd v Foreign Compensation Commission: HL 17 Dec 1968
Taxpayer companies challenged the way that the revenue restricted claims for group Corporation Tax relief for subsidiary companies in Europe. The issue was awaiting a decision of the European Court. The Revenue said that the claims now being made by other companies should proceed through the Commissioners who could implement European law directly. The taxpayers … Continue reading Autologic Holdings Plc and others v Commissioners of Inland Revenue: HL 28 Jul 2005
Surtax – Settlement – Arrangement – Settlor – Fees for actress’s services paid to company but enuring for her benefit – Actress aged 14 when arrangements made – Settlement with more than one settlor – From whom income originates – Income Tax Act 1952 (15 and 16 Geo. 6 and 1 Eliz. 2, c. 10), … Continue reading Mills (Hayley) v Commissioners of Inland Revenue: HL 12 Feb 1974
The landlord had opted to charge VAT on part of the rent. The tenant fell into arrears and now challenged a notice to quit which included the VAT. The court was asked what constituted ‘rent’ for the purposes of a demand for rent founding a notice to quit an agricultural tenancy. Held: The notice had … Continue reading Mason v Boscawen: ChD 18 Dec 2008
Interpretation of Double Taxation Agreements This appeal is concerned with the interpretation and application of a double taxation agreement between the United Kingdom and the United States of America. A had been a member of an LLP in Delaware, and he was resident within the UK, but not domiciled here. He was liable to UK … Continue reading Anson v Revenue and Customs: SC 1 Jul 2015
The two prisoners, serving life sentences for murder, had had their appeals rejected. They continued to protest innocence, and sought to bring their campaigns to public attention through the press, having oral interviews with journalists without . .
