The Artists’ Rifles took a building lease of land in 1888, on which they constructed a drill hall financed at least in part by public subscription. They acquired the freehold 10 years later. The drill hall remained in use for some 70 years, and further public money was spent on its maintenance. The power of … Continue reading In Re Edis’ Declaration of Trust: 1972
The claimant contended that section 2(2)(b) of the the 1972 Act did not confer power on Her Majesty’s Treasury to make the 2003 Regulations and, accordingly, they should be quashed or, alternatively, construed so as to be intra vires. Judges: Moses LJ Citations: [2008] EWHC 2567 (Admin), [2009] Eu LR 317 Links: Bailii Statutes: Financial … Continue reading Cukurova Finance International Ltd and Another, Regina (on The Application of) v HM Treasury and Another: Admn 29 Sep 2008
ECJ According to article 177 of the Treaty it is for the national court and not the parties to the main action to bring a matter before the court of justice. Since the power to formulate the questions to be referred is vested in the national court alone the parties cannot alter the wording of … Continue reading Fratelli Grassi Fu Davide v Italian Finance Administration. (Questions Referred To The Court For A Preliminary Ruling): ECJ 15 Jun 1972
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 – Procedure – Back duty – Neglect – Assessments made after six years, but within six years of determination of assessment for normal year – Taxpayer not entitled to make representations on application for leave to assess out of time – Finance Act 1960 (8 and 9 Eliz. 2, c.44), 5.51(3); Income … Continue reading Pearlberg v Varty (Inspector of Taxes): HL 22 Mar 1972
The claimant company set out to sell land whilst it was still only in the process of incorporation. Its solicitors had signed as agents, and now sought an order for the purchaser to complete the contract. The respondent had not known of the non-incorporation of the company. The claimant later rescinded the contract, and forfeited … Continue reading Braymist Limited and Others v Wise Finance Company Limited: CA 20 Feb 2002
A company created a new class of preferred shares which it issued credited as fully paid to its two shareholders. They sold the shares to a purchaser on terms that the price was to be paid by instalments. Under arrangements made between the parties the company paid dividends on the shares which were paid into … Continue reading Greenberg v Inland Revenue Commissioners: HL 1972
A company which re-took possession of a car, which they had sold in exchange for a dishonoured cheque, had taken possession under a disposition. The meaning of disposition was dealt with differently by the three members of the Court of Appeal. Lord Denning said that the word ‘disposition’ was a very wide word and cited … Continue reading Worcester Works Finance Ltd v Cooden: CA 1971
Europa 1. Common customs tariff – tariff classification – heading 23.07 -interpretation (regulations nos 19/62 and 55/62) 2. Common customs tariff – tariff classification – criteria – application -jurisdiction of the national court 1. Heading 23.07 of the common customs tariff, to which reference is made in article 1 (d) of and the annex to … Continue reading Arend van de Poll KG v Hauptzollamt Trier (Judgment): ECJ 14 Dec 1972
Construction of selective employment tax Lord Reid, Lord Morris of Borth-Y-Gest, Lord Diplock, Lord Simon of Glaisdale, And, Lord Kilbrandon [1972] UKHL 8, [1972] 1 WLR 488, [1972] 1 All ER 1130, [1972] SLT 103, [1972] SC (HL) 1, (1972) 12 KIR 329 Bailii Finance Act 1966 44 Scotland Cited by: Cited – MSF v … Continue reading Lord Advocate v Babcock and Wilcox (Operations) Ltd: HL 15 Mar 1972
A company went into liquidation, being owed substantial sums by another company in the same group, but itself insolvent. A settlement did not include accrued interest, but was claimed to be taxed as if it had, and on an accruals basis. If so, was this an expense properly arising in the insolvency, and payable as … Continue reading Kahn and Another v Commissioners of Inland Revenue; In re Toshoku Finance plc: HL 20 Feb 2002
Under s 3 of the 1962 Act and paras 1 and 10 of Sch 1, a Commonwealth citizen to whom the Act applied landing in the United Kingdom from a ‘ship’ (as widely defined) or an aircraft could within 24 hours of his landing be required by an immigration . .
The applicant sought leave to appeal out of time against the dismissal of his claim as an abuse of process, being an attempt to relitigate a lost case. He claimed to have had an interest in a house formerly occupied as a matrimonial property. The . .
References: [1954] 1 QB 292 Coram: Lord Evershed MR, Jenkins LJ The court considered the possibility of a claim in breach of contract for damages for both capital loss and loss of profit. Lord Evershed MR said: ‘It seems to me, as a matter of principle, that the full claim of damages in the form … Continue reading Cullinane v British ‘Rema’ Manufacturing Co Ltd: CA 1954
1267 – 1278 – 1285 – 1297 – 1361 – 1449 – 1491 – 1533 – 1677 – 1688 – 1689 – 1700 – 1706 – 1710 – 1730 – 1737 – 1738 – 1751 – 1774 – 1792 – 1793 – 1804 – 1814 – 1819 – 1824 – 1828 – 1831 – 1832 … Continue reading Acts
VAT – Exemption in Group 4 of Schedule 5 to Finance Act 1972 – Playing games of chance – Whether ‘Spot the Ball’ competition is a ‘game’ – Whether entrants are ‘playing’ a game’ Appeal Allowed . .
Under s247 of the 1988 Act, a company paying dividends to a parent company need not withhold ACT. This option was not offered where either subsidiary or parent was not UK resident until the decision in Hoechst which found the restriction contrary to European law. The Revenue now appealed a decision allowing recovery of the … Continue reading Pirelli Cable Holding Nv and others v Inland Revenue: HL 8 Feb 2006
Where an employer has not deducted tax, the employee can be liable to a tax assessment. The recipient of Schedule E income can still be directly assessable. HL Income Tax – Schedule E – Employment – Gain on sale of shares – Whether taxable under Schedule E – Whether purchaser liable to deduct tax under … Continue reading Inland Revenue Commissioners v Herd: HL 17 Jun 1993
The taxpayer had been assessed to VAT on the supply of time share holiday cottages. The supply was of an eighty year lease to each tenant with the right to occupy for one week in each of the eighty years. The taxpayer argued that the supply qualified for zero rating. Held: The argument failed. The … Continue reading Cottage Holiday Associates Ltd v Customs and Excise Commissioners: 1983
FTTTx VAT – HMRC’s refusal to register appellant for VAT – Definition of ‘taxable person’ – Finance Act 1972 and VAT Act 1994 – Compulsory Registration Threshold – Principal VAT Directive Article 286 – Whether United Kingdom enjoys a valid exemption or derogation in relation to the definition of taxable person? – Yes – Whether … Continue reading Geotrading Europe Ltd v Revenue and Customs (VAT – Registration : Compulsory): FTTTx 10 May 2016
HL Income tax – Close company – Undistributed income – Amount of income which might be apportioned without prejudice to the requirements of the company9s business – Whether acquisition of a motor dealership a requirement of the company9s business – Finance Act 1972, Sch 16, para 8. [1982] UKHL TC – 56 – 279 Bailii … Continue reading Wilson and Garden Ltd v Inland Revenue Commissioners: HL 8 Jul 1982
HL Double taxation relief – UK resident company in receipt of dividends from companies resident abroad – Whether relief by way of credit to be given for foreign taxes on such dividends before or after advance corporation tax in respect of distributions made by it is set against its liability to corporation tax – Double … Continue reading Collard (Inspector of Taxes) v Mining and Industrial Holdings Ltd: HL 13 Apr 1989
The House was asked whether the Ministry of Defence was entitled to cone off a section of the A814 road without the permission of the roads authority under the Roads (Scotland) Act 1984 or the local planning authority under the Town and Country Planning (Scotland) Act 1972. Held: Before the Acts of Union, Scots law … Continue reading Lord Advocate v Dumbarton District Council: HL 1989
The claimant gambler sought payment of his winnings. The casino said that he had operated a system called edge-sorting to achieve the winnings, and that this was a form of cheating so as to excuse their payment. The system exploited tiny variances in the appearance of the sides of playing cards, and the manipulation of … Continue reading Ivey v Genting Casinos (UK) Ltd (T/A Crockfords): SC 25 Oct 2017
The parties came together in a limited partnership to develop property. The appeal was against a refusal to grant summary judgment on a claim that one party had been induced to enter the contract by a fraudulent misrepresentation. Held: In this case, the defendant knew of the unlawful activity, and had no arguable defence, and … Continue reading Criterion Properties Plc v Stratford UK Properties and others: CA 18 Dec 2002
The court discussed when it was appropriate for the Court of Appeal to substitute other lesser convictions, after the main conviction had been declared unsafe. Held: After studying the authorities at length, the court felt that the various convictions should be quashed, but that in some cases there was a possibility of substituting verdicts of … Continue reading Regina v Graham, Kansal, etc: CACD 25 Oct 1996
The revenue appealed against refusal of its petition for the winding up of the company for non-payment of a VAT assessment. The company said that the assessment was disputed. The revenue said that the company had been run for the purpose of submitting false VAT Input tax claims, and suppressing Output tax invoices. Held: The … Continue reading Revenue and Customs v Rochdale Drinks Distributors Ltd: CA 13 Oct 2011
The court was asked whether Lister and Co v Stubbs 45 ChD 1, a decision of the Court of Appeal, was binding on him or whether he could apply the Privy Council’s decision in Attorney General for Hong Kong v Reid Held: On the facts of the case the judge was able to distinguish Lister … Continue reading Daraydan Holdings Limited, Cairn Estates Limited and Others v Solland International Limited and Others: ChD 26 Mar 2004
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 company had incurred capital expenditure in machinery and plant for trading before 1972. The 1975 Act prevented them claiming the expenditure as losses, and they sought to carry them forward to 1973 when additional claims were possible. The Revenue said that the allowances had to be claimed in the periods incurred. Held: The Crown’s … Continue reading Elliss v BP Oil Northern Ireland Refinery Ltd: CA 1987
The company had ceased trading, but rental income was still generated from its former premises. The Revenue sought to include the receipt in calculations of whether the company was entitled to a small company corporation tax rate. The Revenue appealed the special commissioner’s decision that it was not a business income. Held: The appeal failed. … Continue reading HM Revenue and Customs v Salaried Persons Postal Loans Ltd: ChD 7 Apr 2006
HL Estate duty – Share valuation – Unquoted shares – What information to be deemed available to hypothetical purchaser in open market – Finance Act 1894 (57 6 58 Viet., c.30), 5.7(5). Citations: [1971] UKHL TC – 47 – 375, 47 TC 375, [1971] 3 All ER 914, [1972] AC 680, [1971] 3 WLR 759, … Continue reading Lynall v Inland Revenue Commissioners: HL 27 Oct 1971
Mrs Nolan had been employed at a US airbase. When it closed, and she was made redundant, she complained that the appellant had not consulted properly on the redundancies. The US denied that it had responsibility to consult, and now appealed. Held: The appeal failed (Lord Carnworth dissenting). That the exact situation might not have … Continue reading The United States of America v Nolan: SC 21 Oct 2015
There was a contract for the sale of Craven Cottage football stadium, conditional upon the grant of non-onerous planning permissions. It was claimed that the contract had been obtained by the defendant employee in breach of his fiduciary duties to another company of whom he was a director. The defendant said the claimant had agreed … Continue reading Crown Dilmun, Dilmun Investments Limited v Nicholas Sutton, Fulham River Projects Limited: ChD 23 Jan 2004
The taxpayer appealed against a rating assessment on a barge permanently moored at a riverbank. He claimed that as a chattel, it should not be rated. Held: The vessel was a chattel, but its occupation could be an occupation of the riverbed. The licences were stated to be non-exclusive, but the law of rating looks … Continue reading Cinderella Rockerfellas Ltd v Rudd (Valuation Officer): CA 11 Apr 2003
The company was the assignee of a lease. The rent appears to have been payable in advance on the usual quarter days. The company went into liquidation in November 1971. At some time before April 1972 the liquidator instructed agents to market the lease and it was assigned to a purchaser in January 1973. Rent … Continue reading In re Downer Enterprises Ltd: ChD 1974
The plaintiffs contracted to buy a plot of registered land with a house to be built on it. The developer had charged the estate as a whole to a bank to secure the development finance. The developer became insolvent and the bank sold the estate as mortgagee to the first defendant ‘subject to and with … Continue reading Lyus v Prowsa Developments Ltd: ChD 1982
The House was asked about the fixing of ‘price . . in the open market’ of a parcel of shares held in a private company. The Finance Act 1894 provided a method of valuation of property for estate duty purposes by reference to what the property would fetch if sold in the open market at … Continue reading Lynall v Inland Revenue Commissioners: HL 2 Jan 1971
The obligation of a guarantor under a contract ‘is not an obligation himself to pay a sum of money to the creditor, but an obligation to see to it that another person, the debtor, does something.’ When a repudiatory breach is accepted by the injured party to discharge the contract, all primary obligations remaining for … Continue reading Lep Air Services v Rolloswin Investments Ltd; Moschi v LEP Air Services: HL 1973
Mutual Knowledge admissible to construe contract The parties had entered into a development contract in respect of a site in Wandsworth, under which balancing compensation was to be paid. They disagreed as to its calculation. Persimmon sought rectification to reflect the negotiations. Held: The appeal succeeded. There were difficulties in construing the contract. The contract … Continue reading Chartbrook Ltd v Persimmon Homes Ltd and Others: HL 1 Jul 2009
Swap deals outwith Council powers The authority entered into interest rate swap deals to protect itself against adverse money market movements. They began to lose substantial amounts when interest rates rose, and the district auditor sought a declaration that the contracts were void, there being no express power in the relevant legislation. Held: The arrangements … Continue reading Hazell v Hammersmith and Fulham London Borough Council: HL 1991
The court reconsidered the law relating to penalty clauses in contracts. The first appeal, Cavendish Square Holding BV v Talal El Makdessi, raised the issue in relation to two clauses in a substantial commercial contract. The second appeal, ParkingEye Ltd v Beavis, raised the issue at a consumer level, with a separate issue under the … Continue reading Cavendish Square Holding Bv v Talal El Makdessi; ParkingEye Ltd v Beavis: SC 4 Nov 2015
A private seller had parted with his car in return for a worthless cheque to a rogue who persuaded him that he was the well-known actor who played Robin Hood on television, and who sold it on to the defendant. Held: ‘When two parties have come to a contract – or rather what appears, on … Continue reading Lewis v Averay: CA 22 Jul 1971
(Jamaica) The government had intervened in banking institutions under the control of the appellant. Subsequently orders had been made against him for compensation in respect of loans made negligently or otherwise than in accordance with good banking practice. He appealed those orders. Held: The appeal failed. He had not been accused of fraud, and his … Continue reading Crawford v Financial Institutions Services Ltd: PC 2 Nov 2005
HL Surtax – Tax advantage – Counteraction – Contracts made before 5th April 1960 for forward dividend-strip – Purchase money released to vendor after that date as and when dividends paid – Whether tax advantage obtained from transactions in securities carried out before 5th April 1960 – Finance Act 1960 (8 and 9 C Eliz. … Continue reading Greenberg v Inland Revenue Commissioners: HL 20 Jul 1971
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
Short issue as to the requirements for valid ‘service’ of a completion notice so as to bring a newly completed building within liability for non-domestic rates. The notice had been served by email where no statutory authority existed for this. Held: The LA’s appeal succeeded. ‘Against the background of the detailed scheme established by or … Continue reading UKI (Kingsway) Ltd v Westminster City Council: SC 17 Dec 2018
Builder’s Guarantee Ultra Vires LA The council set out to provide a swimming pool using powers under s.19 of the 1976 Act. Purporting to use powers under s.111 of the 1972 Act, it set up a company to develop a site by building a leisure pool and time-share units, with a view to selling the … Continue reading Credit Suisse v Allerdale Borough Council: CA 20 May 1996
Former HL decision in Siebe Gorman overruled The company had become insolvent. The bank had a debenture and claimed that its charge over the book debts had become a fixed charge. The preferential creditors said that the charge was a floating charge and that they took priority. Held: The appeal was allowed. The debenture, although … Continue reading National Westminster Bank plc v Spectrum Plus Limited and others: HL 30 Jun 2005
Standard Conract – Wide Exclusions, Apply 1977 Act The claimant had acquired a computer system from the defendant, which had failed. It was admitted that the contract had been broken, and the court set out to decide the issue of damages. Held: Even though Wang had been ready to amend one or two of its … Continue reading Pegler Ltd v Wang (UK) Ltd: TCC 25 Feb 2000
In the course of ancillary relief proceedings in a divorce, questions arose regarding company assets owned by the husband. The court was asked as to the power of the court to order the transfer of assets owned entirely in the company’s names. The judge had made such an order, finding evidence that the companies had … Continue reading Prest v Petrodel Resources Ltd and Others: SC 12 Jun 2013
The House considered the power of an officer of the Board of Inland Revenue to seize and remove materials found on premises which a warrant obtained on application to the Common Serjeant authorised him to enter and search; but where the source of the power limited the power of seizure and removal to things ‘which … Continue reading Regina v Inland Revenue Commissioners ex parte Rossminster Ltd: HL 13 Dec 1979
Damages on Construction not as Agreed The appellant had contracted to build a swimming pool for the respondent, but, after agreeing to alter the specification to construct it to a certain depth, in fact built it to the original lesser depth, Damages had been awarded to the house owner against a builder at the cost … Continue reading Ruxley Electronics and Construction Ltd v Forsyth: HL 29 Jun 1995
Necessity for Reference to ECJ Lord Denning said that the test for whether a question should be referred to the European Court of Justice is one of necessity, not desirability or convenience. There are cases where the point, if decided one way, would shorten the trial greatly. But if decided the other way, it would … Continue reading HP Bulmer Ltd and Another v J Bollinger Sa and others: CA 22 May 1974
An insurance company had engaged a main contractor to handle repairs to houses insured under its policies. The contractor had engaged the claimant subcontractor to carry out the works at the defendants’ homes, but then went into insolvent liquidation before the works were paid for. The claimant now sought payment direct from the insured. The … Continue reading AJ Building and Plastering Ltd v Turner and Others: QBD 11 Mar 2013
The House considered a petition by a holder of 25 of the 100 issued shares in the company against the majority shareholder. The petitioner, an ex-employee, had been taken into management and then given his shares and permitted to take 50% of the company’s profits and a salary. Later the respondent in negotiations with the … Continue reading O’Neill and Another v Phillips and Others; In re a Company (No 00709 of 1992): HL 20 May 1999
The parties had cohabited for a long time, in a home bought by Ms Dowden. After the breakdown of the relationship, Mr Stack claimed an equal interest in the second family home, which they had bought in joint names. The House was asked whether, when a conveyance into joint names indicates only that each party … Continue reading Stack v Dowden: HL 25 Apr 2007
The parties had contracted for the construction of an estate of houses and flats to be followed by the interim purchase by the defendants. The defendants argued that the slump in land prices frustrated the contract and that they should not be called on to purchase the properrties at the price stated because they would … Continue reading Gold Group Properties Ltd v BDW Trading Ltd: TCC 3 Mar 2010
Appropriation was not in sufficient form The claimants had challenged an order supporting the decision of the Council to use their allotments for a new primary school, saying that the land had be appropriated as allotment land, and that therefore the consent of the minister was needed. Held: The appeal failed. The use of the … Continue reading Adamson, Regina (on The Application of) v Kirklees Metropolitan Borough Council: CA 18 Feb 2020
An undisclosed principal will not be permitted to claim to be party to a contract if this is contrary to the terms of the contract itself. Thus the provision in the standard form B contract of the London Metal Exchange ‘this contract is made between ourselves and yourselves as principals, we alone being liable to … Continue reading JH Rayner (Mincing Lane) Ltd v Department of Trade and Industry: HL 1989
The court was asked ‘whether and if so how an easement arising informally and not protected by any entry at the Land Registry can be effective against a purchaser of the land over which the easement would be exercised.’ The parties respectively owned the ground and first and second floors of a bulding. Access to … Continue reading Chaudhary v Yavuz: CA 22 Nov 2011
The parties were not married, but had brought together their resources to purchase a home in the name of one of them. Nothing had been said about the respective shares on which the property was to be held. Held: The shares were to be assessed as at the time of the sale, not the time … Continue reading Oxley v Hiscock: CA 6 May 2004
The plaintiff alleged that the defendant had copied its house designs after a senior employee involved in creating the designs left and eventually came to work for the defendant. The plaintiff alleged that the copying was flagrant allowing . .
A collateral contract was entered into with a company which had not then been incorporated under which an advance by Phonogram to support an intended new pop group was repayable by the company if a recording contract was not entered into within one . .
The parties had engaged in a bitter 95 day trial in which allegations of forgery, theft, false accounting, blackmail and arson. A company owning patents and other rights had become insolvent, and the real concern was the destination and ownership of . .
Criterion sought to set aside a shareholders agreement. Their partner had said they were concerned that another party was taking Criterion over and that this would put at risk their working relationships. The agreement sought to add a poison pill to . .
The television company had agreed with the actor defendant for him to appear in a production. He breached the contract. The company sought both loss of profits and for the expense incurred. The issue before the Court of Appeal was whether such . .
The principles set out in Canada Steamship apply to ‘clauses which purport to exempt one party to a contract from liability’. The principles should be applied without ‘mechanistic construction’. Lord Keith of Kinkel: The tests were guidelines, but . .
References: [1961] 1 QB 31, [1960] EWCA Civ 1 Links: Bailii Coram: Pearce LJ and Devlin LJ Two ladies had a car for sale. A buyer came along. He fooled them into believing him to be someone else, and they sold him the car, after checking the name in the telephone directory. Before the cheque … Continue reading Ingram v Little; 27 Jul 1960
