The respondent taxpayer company, had transferred to a third party its licence to exploit various patents for the manufacture of a marine steam turbine engine in return for the payment of a royalty on every engine sold by the third party and whose only business consisted of receiving the royalties, was not ‘carrying on a trade or business’ within the meaning of the Finance (No. 2) Act 1915.
Held: The word ‘business’ was used in the sense of ‘an active occupation or profession continuously carried on’.
Judges:
Rowlatt J
Citations:
[1920] 1 KB 193
Statutes:
Jurisdiction:
England and Wales
Cited by:
Cited – GE Capital Bank Ltd v Rushton and Another CA 14-Dec-2005
The bank had entered into a master trading agreement with a trader under which the trader bought motor vehicles as agent for the bank for resale. The vehicles belonged to the bank. The defendant bought all the trader’s vehicles. The defendant now . .
Lists of cited by and citing cases may be incomplete.
Income Tax
Updated: 01 December 2022; Ref: scu.236666