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
The taxpayer sought capital gains tax relief of a loan to a business. Held: To succeed in his claim the taxpayer had to establish that the indebtedness created was to be used entirely to serve the borrower’s business. Judges: The Honourable Mr Justice Patten Citations: [2004] EWHC 1596 (Ch), Times 22-Jul-2004 Links: Bailii Statutes: Taxation … Continue reading David Robson v Eric Mitchell (HM Inspector of Taxes): ChD 8 Jul 2004
Judges: Lord Justice Buxton Lord Justice Sedlay Lord Justice Jacob Citations: [2004] EWCA Civ 1518, [2005] 1 WLR 1090 Links: Bailii Jurisdiction: England and Wales Citing: Appeal from – Agassi v S Robinson (HM Inspector of Taxes) ChD 17-Mar-2004 The non-resident tennis player taxpayer appealed a charge to tax in respect of payments made for … Continue reading Agassi v Robinson (Inspector of Taxes): CA 19 Nov 2004
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
Surtax – Profits Tax – Company under control of not more than five persons-No estate or trading income-Income receipts less than deduction for Profits Tax in computing actual income from all sources – Whether Profits Tax payable ‘ – Whether Surtax direction mandatory so as to found Profits Tax exemption – Finance Act, 1947 (10 … Continue reading Special Commissioners of Income Tax v Linsleys (Established 1894), Ltd (In Liquidation): HL 23 Jan 1958
The taxpayer was a senior employee. Involved in a traffic accident, he faced possible imprisonment if convicted. His company volunteered to pay his defence costs. The House was now asked whether the sum paid was chargeable to income tax. Held: The appeal was hopeless. Where there is in fact a benefit and, therefore, a perquisite … Continue reading Rendell v Went (Inspector of Taxes): HL 5 May 1964
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
HL Income Tax – Child allowance – Income of child – Foreign employment – No remittance to United Kingdom – Whether child ‘entitled . . . to an income’ Income Tax Act 1952 (15 and 16 Geo. 6 and 1 Eliz. 2, c. 10), s. 212(4). Citations: [1969] UKHL TC – 45 – 651 Links: … Continue reading Mapp (Inspector of Taxes) v Oram: HL 23 Jul 1969
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
The court considered whether the partners in a firm of solicitors could deduct from profits the expenses involved in entertaining clients to lunch. Held: They were deductible, notwithstanding the element of hospitality involved: ‘The relevant words of r 3 (a) of the Rules Applicable to Cases I and II ‘wholly and exclusively laid out or … Continue reading Bentleys, Stokes and Lowless v Beeson (HMIT): CA 1952
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
The taxpayer was a milkman. He sought to set off against his liability to income tax, the expenses of his daily journey between his home and the depot from which he collected the milk for distribution. Held: The only test was whether the expense was wholly necessarily and exclusively incurred for the purposes of the … Continue reading Powell v Jackman (Inspector of Taxes): ChD 10 Mar 2004
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 taxpayer claimed to deduct the legal costs of contesting an assessment to tax. The dispute was about the computation of the taxpayer’s profits. It assumed that those profits were ascertainable, one way or another, at the time when the dispute arose. The costs of the dispute could not therefore have been an element in … Continue reading Smith’s Potato Estates Ltd v Bolland (Inspector of Taxes): HL 1948
Citations: (1945) TC 310, (1945) 173 LT 77 Cited by: Cited – Newsom v Robertson ChD 30-Apr-1952 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 … Continue reading Spofforth and Prince v Golder (Inspector of Taxes): 1945
A company which dealt in shares issued an originating summons in the Chancery Division requesting a declaration as to the correct method of computing its income for the purposes of loss relief. The revenue challenged the proceedings as an abuse of process. Held: The taxpayer’s appeal failed. The strike out by J Plowman was confirmed. … Continue reading Argosam Finance Co Ltd v Oxby (Inspector of Taxes): CA 1965
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
The College was established to promote and encourage the study and practice of the art and science of surgery. The professional protection of members of the College (not a charitable purpose) was held to be ‘an incidental though an important and perhaps necessary consequence of the work of the College in carrying out its main … Continue reading Royal College of Surgeons of England v National Provincial Bank Ltd: HL 1952
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
The House was asked whether a hypothetically rebuilt block of flats would have been subject to the Rent Restriction Acts.
Held: A court should not shrink from applying the fiction created by the deeming provision to the consequences which . .
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 – . .
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
Practice – Parties – Joinder – Proceedings between subjects raising issues material to income tax – Joinder of Commissioners of Inland Revenue – Income Tax Act 1952 (15 and 16 Geo. 6 and 1 Eliz. 2, c.10), ss. 52 and 64 ; Income Tax Management Act . .
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
TC Surtax – Undistributed income of trading company – Computation of actual income – Balancing charge – Income Tax Act, 1952 (15 and 16 Geo VI and 1 Etiz. H, c. 10), Sections 245, 248, 255 (3), 292, 301 (1) and 323 (4). Citations: [1958] UKHL TC – 38 – 275 Links: Bailii Statutes: Income … Continue reading Inland Revenue v Wood Bros, (Birkenhead), Ltd (In Liquidation): HL 18 Dec 1958
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
Surtax – Undistributed income of company – Dividends received on securities dealt in by company – Whether company an investment company – Income Tax Act, 1952 (15 and 16 Geo. VI and 1 Eliz. II, c. 10), Sections 245 and 257(2). Citations: [1964] UKHL TC – 41 – 666, [1964] 1 WLR 742, (1964) 41 … Continue reading Inland Revenue Commissioners v FS Securities Ltd: HL 4 Jun 1964
(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
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 court upheld a declaration by the trial judge that the claimant was an equitable chargee under an equitable charge of the defendant’s property, notwithstanding that the claimant relied on an oral agreement by the defendant for the grant to the claimant of a charge on the property and which therefore did not comply with … Continue reading Kinane v Mackie-Conteh: CA 1 Feb 2005
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 – Capital or income – Rentcharges – Payable for 10 years – Paid as consideration for sale of capital assets – Whether containing a capital element – Whether wholly payable under deduction o f tax – Income Tax Act 1952 (15 and 16 Geo. 6 and 1 Eliz. 2, c. 10), 177. … Continue reading Inland Revenue Commissioners v Church Commissioners for England: HL 7 Jul 1976
Surtax – Undistributed income of trading company – Control transferred during accounting period to company outside Section 245, Income Tax Act, 1952 – Whether income can be apportioned to members prior to transfer – Resolution to pay no dividend on ordinary shares followed by resolution at later date to pay a dividend – Whether dividend … Continue reading CHW (Huddersfield) Ltd v Inland Revenue Commissioners: HL 20 Jun 1963
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
Section 402, on its plain meaning, produced results in some cases which were ‘monstrous’ and which Parliament can never have intended. The Commissioners had not sought to amend the legislation, but realising the monstrous result of giving effect to the true construction of the section, worked out what they consider to be an equitable way … Continue reading Bates v Inland Revenue Commissioners: HL 1968
Surtax – Investment company – Computation of actual income – Deduction – Annual payment under voluntary covenant – Beneficiary not an individual – Income Tax Act 1952 (15 and 6 Geo. 6 c 1 Eliz. 2, c. 10), ss. 245, 248, 255(3), 262 and 45 . Citations: [1966] UKHL TC – 43 – 301, [1966] … Continue reading Inland Revenue Commissioners v Coathew Investments Ltd: HL 31 Mar 1966
HL Income tax – Annual payment – Payments agreed to be applied in purchasing payer’s business – Whether payable under deduction of tax – Income Tax Act 1952 (15 and 16 Geo. 6 and I Eliz. 2, c. 10), ss. 169 and 447(1)(6). Citations: [1968] UKHL TC – 45 – 427, [1968] 3 All ER … Continue reading Campbell (Trustees of Davies Education Trust) v Inland Revenue Commissioners: HL 23 Oct 1968
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
HL Income tax – M ortgage interest charged to capital – W hether payable out o f profits or gains brought into charge to tax – Appeal against first assessment to income tax fo r one year settled by agreement – W hether additional assessment competent – Income Tax Act 1952 (15 and 16 Geo. … Continue reading Chancery Lane Safe Deposit and Offices Co Ltd v Inland Revenue Commissioners: HL 15 Dec 1965
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
The taxpayer company was the parent company of a group of subsidiaries, one of which traded as the manufacturer and retailer of shoes. The others either manufactured or sold shoes. The company built a warehouse which was let to a warehousing subsidiary (Jacksons Limited). Parts of the warehouse were used to store shoes from the … Continue reading Saxone Lilley and Skinner (Holdings) Ltd v Commissioner of Inland Revenue: HL 1967
The taxpayer companies had purported to pay interest on debentures, but these payments were ultra vires and void. Held: The court upheld the Special Commissioners’ disallowance of payments of interest ‘grotesquely out of proportion to the principal amounts secured’ as not being interest within the meaning of section 169. The sums could not accordingly be … Continue reading Ridge Securities Ltd v Inland Revenue Commissions: ChD 1964
The farm was farmed by a father and son in partnership. They had both lived in the original farmhouse, but a new house was built to house the son. The issue was whether the new house was a farmhouse or an agricultural cottage. If it was a cottage the whole of the expenditure on it … Continue reading Commissioners of Inland Revenue v John M Whiteford and Son: 1962
HL Income Tax – Incorrect return – Amount of penalty – Income Tax Act, 1952 (15 and 16 Geo. VI and 1 Eliz. II, c. 10), Section 25 (3).A court’s search for parliamentary intention is not an enquiry as to what the executive sought to achieve in drafting the Bill, but is ascertained from the … Continue reading Inland Revenue v Hinchy: HL 18 Feb 1960
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
Surtax – Settlement – Capital sums paid to settlor – Whether paid by ‘body corporate connected with the settlement’ Meaning of ‘relevant year of assessment’ – Income Tax Act 1952 (15 and 16 Geo. 6 and 1 Eliz. 2, c. 10), ss. 408 and 411(4). [1966] UKHL TC – 44 – 225, [1968] AC 483, … Continue reading Inland Revenue Commissioners v Bates: HL 8 Dec 1966
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
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
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
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 taxpayer imported swimwear for sale. The respondent had incorrectly indicated that such swimwear had one classification. The claimant sought to prevent the respondent reclassifying the goods, saying that they had made given binding tariff information. It depended on the proportion of rubber in the suits. The respondent viewed the calculation differently. Held: the commissioners … Continue reading Matalan Retail Ltd v Revenue and Customs: ChD 5 Aug 2009
The taxpayer made a gift of shares to a trust set up to fund a medical professorship. The shares were in a private company, and an option was given for their repurchase once a certain level of dividends had been attributed to them. He was assessed to substantial surcharges on them on the basis that … Continue reading Vandervell v Inland Revenue Commissioners: HL 24 Nov 1966
The deceased had sought to create a trust to benefit the Royal College of Surgeons. The parties disputed its tax effect.
Held: Lord Denning MR said: ‘We will in this court give the rule a wide interpretation so as to enable any party to be . .
Taxes are imposed upon subjects by Parliament. A citizen cannot be taxed unless he is designated in clear terms by a taxing Act as a taxpayer and the amount of his liability is clearly defined. A proposition that whether a subject is to be taxed or . .
References: (1966) 42 TC 675 Coram: Lord Clyde, Lord Guthrie A co-operative society carried on business as general merchants. Its objects included manufacturing of all kinds. A substantial part of its business was the sale of coal in 1cwt bags and in bulk, distributed by lorry from the society’s coal yard or depot. It also … Continue reading Kilmarnock Equitable Co-operative Society Ltd v Inland Revenue Commissioners: SCS 1966
FTTTx INCOME TAX – self-employed consultant geriatrician with office at home where he performed significant business functions – travel between home, places of employment and private hospitals where he saw private patients – deductibility of travel expenses – whether incurred wholly and exclusively for the purpose of his self-employment – application of Newsom v Robertson, … Continue reading Samadian v Revenue and Customs: FTTTx 28 Jan 2013
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
Surtax – Settlement – Settlement on settlor – s infant children – Power to appoint fund absolutely to spouses of grandchildren – Whether settlement ‘revocable’ – Income Tax Act, 1952 (15 and 16 Geo. V I and 1 Eliz. II, c. 10), Sections 397 to 399. Citations: [1963] UKHL TC – 41 – 43, (1963) … Continue reading Inland Revenue Commissioners v Jamieson: HL 20 Jun 1963
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 House was asked whether the taxpayer association was established for ‘Charitable purposes only’ so as to benefit from tax exemptions. The association promoted sporting activities among members of the Glasgow police. Held: Though the purposes included charitable objects, they also included objects which were not charitable. Lord Normand: ‘what the Respondents must show in … Continue reading Inland Revenue Commissioners v Glasgow Police Athletic Association: HL 9 Mar 1953
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
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
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
Where an electricity supplier operated a waste plant to generate electricity, but still, the predominant use of the plant was for waste disposal, the rates were not to be calculated under the industry’s own special rules, but under those for the general rating of business premises. An explanatory note may be referred to as an … Continue reading Coventry and Solihull Waste Disposal Company Ltd v Russell: HL 25 Nov 1999
Income Tax, Enquiry into Self Assessment Return; whether Return inaccurate; onus of proof; deductions from turnover; adequacy of Appellant’s books and records; whether records destroyed by flood; whether deductions claimed actually incurred; appeal dismissed. Citations: [2012] UKFTT 123 (TC) Links: Bailii Jurisdiction: England and Wales Income Tax Updated: 22 May 2022; Ref: scu.451952
The applicant complained about the compatibility with the European Convention of the Prisons rule 74(4) which provided that ‘every letter to or from a prisoner shall be read by the Governor . . and it shall be within the discretion of the Governor to stop any letter if he considers that the contents are objectionable.’ … Continue reading Campbell v The United Kingdom: ECHR 25 Mar 1992
Mr Newsom, a barrister, sought to deduct the costs of travelling between his chambers in London and his home in Whipsnade or income tax purposes. He carried out a good deal of his professional work in his well-equipped study at home, especially during court vacations (when he only visited his London chambers on rare occasions … Continue reading Newsom v Robertson: CA 3 Jan 1953
The company had paid a penalty during the First World War under the Customs (War Powers) Act 1915 for exporting goods without taking all reasonable care to secure that the ultimate destination should not be enemy territory. They sought to set off the penalty against income tax. Held: The claim was disallowed. Although the incurring … Continue reading Inland Revenue Commissioners v Von Glehn: CA 1920
A bricklayer sought to set against his income tax, the expenses of travelling to and from his home to work. Held: The taxpayer travelled from home to sites within a 55 mile radius. The home was his base of operations, and the expenses were allowed. There was ‘the greatest difficulty drawing a line or indicating … Continue reading Horton v Young: CA 1972
There had been a substantial delay of many years after the order for compulsory purchase was made, with a substantial increase in value after the service of the notice to treat. Held: The physical condition of the reference land and its surroundings is to taken as at the valuation date. Lord Morris of Borth-Y-Gest said: … Continue reading Birmingham Corporation v West Midlands Baptist (Trust) Association Inc: HL 1969
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
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
The appellant convicted of a racially-aggravated vicious murder. Since conviction he had spent almost five years in segregation from other prisoners. The appellant now alleged that some very substantial periods of segregation had been in breach of the prison rules and of his Human Rights. Time limits for authorisation had not been complied with. Held: … Continue reading Shahid v Scottish Ministers (Scotland): SC 14 Oct 2015
