The annual income of the London County Council liable to, and on which they paid, income tax was pounds 956,000, consisting of pounds 838,000 derived from rents and co., and pounds 118,000, the annual value of landed property occupied by themselves. They had from time to time under their statutory powers created capital stock, which was charged upon their whole property. As interest on this stock they annually paid to shareholders (always deducting income tax due thereon), the sum of pounds 1,371,000, the amount by which their own income was insufficient to pay this interest being raised by means of rates. Admittedly, they were entitled to retain for themselves so much of the deducted income tax as represented the tax on their income from rents and other sources – London County Council v. Attorney-General , A.C. 26. Held that they could not retain, but were bound to hand over to the Crown, the amount of tax representing the tax on the value of the lands owned and occupied by them (pounds 118,000).
Lord Chancellor (Loreburn), Lords Macnaghten, James of Hereford, Robertson and Atkinson
 UKHL 1000,  UKHL TC – 5 – 242, 5 TC 242
England and Wales
Income Tax, Local Government
Updated: 27 April 2022; Ref: scu.622277