The court considered whether the purchase and sale of an item making a profit must count as acting in the course of trade so as to cause liability to income tax. Donovan LJ: ‘It cannot be right, therefore, to assert, as the Crown did before us, that whenever something is bought to re-sell at a profit an adventure or concern in the nature of trade necessarily results, and any finding of Commissioners to the contrary must be perverse. Otherwise there would hardly be any need to introduce a capital gains tax. It would virtually be here already. The true position, in my opinion, is that all the facts in each case must be considered, not merely the motive of acquisition, and a conclusion arrived at from such a comprehensive review.’
Judges:
Donovan LJ
Citations:
(1961) 39 Tax Cas 636
Jurisdiction:
England and Wales
Cited by:
Cited – Wisdom v Chamberlain (Inspector of Taxes) CA 8-Nov-1968
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 . .
Lists of cited by and citing cases may be incomplete.
Income Tax
Updated: 27 November 2022; Ref: scu.235907