A brewery company were, as part of their business, and as a necessary incident of the profitable exploitation of such business, the owners of certain licensed premises. These premises, which were let by the company to tenants as tied houses for the retail sale of the company’s beer, ‘had been acquired by the company and … Continue reading Smith (Surveyor of Taxes) v Lion Brewery Co: HL 14 Feb 1911
Income Tax, Schedule D – Non-resident company – Exercise of trade within the United Kingdom-Income Tax Act, 1853 (16 and 17 Viet., c. 34), Section 2, Schedule D – Income Tax Act, 1842 (5 and 6 Viet., c. 35), Section 41-Finance (No. 2) Act, 1915 (5 and 6 Geo. V, c. 89), Section 31. U … Continue reading Nielsen, Andersen and Company v Collins (HM Inspector of Taxes), Tarn v Scanlan (HM Inspector of Taxes): HL 7 Nov 1927
Income Tax, Schedule D – Profits of trade – Deduction – Income Tax Act, 1842 (5 and 6 Viet., c. 35), Section 100, Schedule D, Case I, Rule 3, and Cases I and II, Rule 1, and Section 159. Citations: [1925] UKHL TC – 10 – 155, 10 TC 155 Links: Bailii Jurisdiction: England and … Continue reading Atherton (HM Inspector of Taxes) v British Insulated and Helsby Cables Ltd: HL 11 Dec 1925
Lord Sterndale MR said: ‘It seems to me to be a general principle of Income Tax Law that a person in order to be taxable in a particular year must have an income arising from a source existing in that year and in order to justify this assessment the Crown must show some reason for … Continue reading The National Provident Institution v Brown (Surveyor of Taxes): CA 10 May 1920
Income Tax (Schedule D). – Place of Assessment. – Foreign Income. Sections 106 and 108 of the Income Tax Act, 1842 Citations: [1915] UKHL TC – 6 – 613, 6 TC 613, [1916] 1 AC 215 Links: Bailii Jurisdiction: England and Wales Income Tax Updated: 26 April 2022; Ref: scu.620692
The House was asked (inter alia) whether discounts on certain Treasury Bills could be subject to taxation, on a preceding year basis, for a year in which the taxpayer did not hold or have any transactions in the relevant securities. Held: The appeal failed (by a majority) Tax could not be charged on that basis. … Continue reading The National Provident Institution v Brown (Surveyor of Taxes): HL 3 Jun 1921
Income Tax-Office or employment of profit-Income Tax Act, 1853 (16 and 17 Vic. c. 34), Section 2, Schedule E ; Income Tax Act, 1842 (5 and 6 Vic. c. 35), Section 146, Schedule E, Third Rule, and Income Tax Act, 1860 (23 and 24 Vic. c. 14), Section 6. [1922] UKHL TC – 8 – … Continue reading Great Western Railway Company, On Behalf of Wh Hall, Clerk To The Great Western Railway Company v Bater (Surveyor of Taxes): HL 13 Mar 1922
The Income Tax Act 1853 enacts-Section 2-‘For the purpose of classifying and distinguishing the several properties, profits, and gains for and in respect of which the said duties are by this Act granted, and for the purposes of the provisions for assessing, raising, levying, and collecting such duties respectively, the said duties shall be deemed … Continue reading Malcolm v Lockhart (Surveyor of Taxes): HL 28 Jan 1919
A testator had left his residuary estate to a charity. His estate included some investments. During the course of the administration of the estate, the executors received income from the investments on which tax had been deducted at source. The income received was eventually handed over to the charity as part of the residue, and … Continue reading Dr Barnardo’s Homes National Incorporated Association v Commissioners for Special Purposes of the Income Tax Acts: HL 14 Mar 1921
The House was asked whether, in a taxing statute applying to the whole of the United Kingdom and allowing for deductions from and allowances against the income of land vested in trustees for charitable purposes, the words ‘charitable purposes’ . .
The appellant, who resided in England and was a shareholder in an American corporation, claimed in respect of his income therefrom to be assessed upon the dividends received during the last financial year and not upon the average dividends of the . .
Income Tax, Schedule E-Income Tax on employees’ Hilaries voluntarily paid by company – Income Tax Act, 1842 (5 and 6 Viet., c. 35), Section 146, Schedule E-Income Tax Act, 1853 (16 and 17 Viet., c. 34), Section 2, Schedule E. . .
Income Tax, Schedule E-Commission based on profits-Perquisites-Income Tax Act, 1842 (5 and 6 Viet., r. 35), Section 146, Schedule E, Rules 1 and 4. . .
The company sought to deduct from its trading profits a sum expended paying damages for personal injuries to a visitor to the taxpayer’s Inn. The claim had been rejected. Held: The company’s appeal failed. Lord Davey said: ‘I think that the payment of these damages was not money expended `for the purposes of the trade’. … Continue reading Strong and Co of Romsey Ltd v Woodifield: HL 30 Jul 1906
The question arose whether the defendant solicitor, sued for fraudulently concealing that his client was insolvent and thereby inducing the plaintiff to issue a promissory note on the client’s behalf, could claim privilege in respect of communications which he had received from his client. The Lord Chancellor held that the defendant could claim privilege, that … Continue reading Greenhough v Gaskell: CA 1833
Held ( affirming the judgment of the Court of Appeal) that a sewer vested in and under control of a local authority is for the purpose of income-tax a hereditament capable of actual occupation, and is chargeable in respect of the annual value thereof according to Schedule A, Rule No. 1, of the Income-Tax Act … Continue reading Ystradyfodwg and Pontypridd Main Sewerage Board v Bensted: HL 19 Jun 1907
A company registered in London for the purpose of carrying on an hotel business in Egypt resolved that the company’s business should be carried on in Egypt by a local board independent of the home board (except that the latter fixed their remuneration). Only such part of the profits as was required for distribution as … Continue reading Mitchell v Egyptian Hotels Ltd: HL 9 Jul 1915
A testator, resident in America, by his will vested his property in trustees, and directed them in their discretion to apply the trust funds for the benefit of his grandchildren. The testator’s son’s widow was now resident in England with the children, and as guardian of the children received remittances from the trustees in America … Continue reading Drummond v Collins: HL 10 Jun 1915
Income Tax – Incorrect Return – Penalty – Section 55 of the Income Tax Act, 1842. Held, affirming Lord Advocate v. Sawe that the penalties imposed by Section 55 are incurred not merely by non-delivery of a return, but by delivering a return which is not true and correct. Judges: the Lord Chancellor (Loreburn), Lords … Continue reading Attorney General v Till: HL 8 Dec 1909
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
The parties disputed the domicile of the tax-payer. He had a domicile of origin in the UK, but asserted that he had acquired a domicile of choice in the Seychelles. The Special Commissioners had allowed, in assessing the domicile at any time, of evidence of later events. Held: The taxpayer’s appeal failed. The Commissioners could … Continue reading Gaines-Cooper v HM Revenue and Customs: ChD 13 Nov 2007
An English assurance company, which carried on its business partly in foreign countries, invested its trading balances in the respective countries on the spot either as statutory deposits or to form a local reserve fund. The Crown claimed to tax the interest on such investments as profits within case 1 of Sched. D of the … Continue reading Liverpool and London and Globe Insurance Co v Bennett: HL 31 Jul 1913
The Court was asked whether interest payable under rule 14.23(7) of the Insolvency Rules 2016 is ‘yearly interest’ within the meaning of section 874 of the Income Tax Act 2007. If so, the administrators must deduct income tax before paying interest to creditors. Lehmann Brothers had become insolvent, but in the administration a substantial surplus … Continue reading Revenue and Customs v Joint Administrators of Lehman Brothers International (Europe): SC 13 Mar 2019
The question was as to the scope of the words ‘yearly interest’ used in the Income Tax Acts of 1842 and 1853. The bankers of certain overseers for the poor allowed the latter by arrangement half-yearly interest at an agreed-on rate on the daily balances standing at their credit. The overseers claimed exemption for income … Continue reading Garston Overseers v Carlisle: 1915
The company had undertaken substantial building works and sought associated tax relief. The court was asked whether, following a change in the company’s memorandum and articles of association, the company, a registered social landlord, remained a charitable organisation. The articles allowed some tenants to become members of the company, and would allow pursuance of objects … Continue reading Helena Partnerships Ltd v HM Revenue and Customs: CA 9 May 2012
The claimant sought an injunction to prevent the respondent Trades Union calling on its members to boycott mail to South Africa. The respondents challenged the ability of the court to make such an order. Held: The wide wording of the statute did not mean that the courts had, in effect, limitless powers to grant interlocutory … Continue reading Gouriet v Union of Post Office Workers: HL 26 Jul 1977
The Bank anticipated criticism in an ad hoc enquiry which was called to investigate its handling of a matter involving the claimant. The claimant sought disclosure of the documents created when the solicitors advised employees of the Bank in preparing to present the Bank’s case, and the Bank now appealed an order granting such access, … Continue reading Three Rivers District Council and others v Governor and Company of the Bank of England (No 6): HL 11 Nov 2004
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 . .
Revenue – Income Tax – Contract – Annuity Payable out of Net Income without Deduction of Income Tax – Income Tax Act 1842 (5 and 6 Vict. cap. 35), secs. 102, 103. . .
The parties entered an agreement to distribute and sell goods in the UK. They disagreed as to the meaning of a term governing the termination of the distributorship.
Held: The court can not take into account the post-contractual conduct or . .
A mutual insurance society in Scotland was assessed for income tax under the fourth case of Schedule D of the Income Tax Act 1842 upon certain sums remitted to them from Australia in 1898. They maintained that they were not liable to be so assessed, . .
