The executor had been left a legacy of andpound;1,000,000 free of duty. When it came due to be paid, he was entitled to interest at 4%, but did not claim the interest. He was assessed to surtax on the sum he could have received.
Held: Since he had not received the sum, he was not to be taxed upon it. Lord Hanworth MR remarked: ”receivability’ without receipt is nothing.’
Judges:
Lord Hanworth MR
Citations:
[1935] 2 KB 351, 19 TC 561
Jurisdiction:
England and Wales
Cited by:
Cited – Revenue and Customs v DCC Holdings (UK) Ltd SC 15-Dec-2010
The taxpayer had entered into a ‘repo’ loan to its bank, agreeing to purchase a block of gilt edged securities, and to resell them at a later date at a fixed figure. The profit and figures included an allowance for the interest payments to be made. . .
Lists of cited by and citing cases may be incomplete.
Income Tax
Updated: 23 June 2022; Ref: scu.235782