Heaton v Bell: HL 1970

The Revenue sought to tax the benefit of a car loan scheme and the issue was whether the emoluments of a participating employee fell to be assessed under Schedule E gross without reference to the weekly sum deducted by the employer for providing, taxing and insuring the car.
Held: The gross wage was taxable. A barter transaction involving the exchange of goods or services in return for goods or services, may give rise to taxable income in some circumstances. The issue was what is the value to the taxpayer himself of this benefit?
Lord Reid observed that it would be ‘absurd to suppose that a transfer of shares which can immediately be sold to produce money should not be regarded as a perquisite’
Lord Reid, Lord Diplock
[1970] AC 728
England and Wales
CitedTennant v Smith (Surveyor of Taxes) HL 14-Mar-1892
A Montrose bank manager had been given free accommodation in a bank house which he was required to occupy.
Held: The Inland Revenue could not charge income tax on the value of the accommodation because the employee could not convert the . .

Cited by:
CitedRevenue and Customs v Forde and McHugh Ltd SC 26-Feb-2014
The Court heard a number of appeals concerned with the interpretation of the phrase in section 6(1) of the Social Security Contributions and Benefits Act 1992, ‘[w]here in any tax week earnings are paid to or for the benefit of an earner’ It was . .
CitedRFC 2012 Plc (Formerly The Rangers Football Club Plc) v Advocate General for Scotland SC 5-Jul-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 . .

These lists may be incomplete.
Updated: 24 February 2021; Ref: scu.546865