Inland Revenue Commissioners v Barnato: CA 1936

The case concerned the liability of Captain Barnato for super-tax on the sums which he received under a judgment for an account against his former partners in the dissolved firm of Barnato Brothers. The sums found due on the taking of the account included an award of interest on the capital sums due down to payment. In order to be assessable to tax they had to constitute interest within the meaning of Schedule D of the Income Tax Act 1918. The argument for the taxpayer (as in Riches v Westminster Bank Ltd) was that the interest was in substance damages or compensation and was not therefore taxable as ‘interest of money’.

[1936] 2 All ER 1176, (1936) 20 Tax Cas 455
England and Wales
Cited by:
CitedRevenue and Customs v Joint Administrators of Lehman Brothers International (Europe) SC 13-Mar-2019
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 . .

Lists of cited by and citing cases may be incomplete.

Income Tax

Updated: 20 January 2022; Ref: scu.671253