A coal merchant carrying on business under a firm name instructed his testamentary trustees to make over his business with its whole assets to his son at a valuation. One of the items at his death on 7th March 1915, as from which date the business was taken over by his son, consisted of certain coal contracts which were entered in the valuation at pounds 30,000, and none of which extended beyond 31st December 1915. Held (Viscount Finlay dissenting) (aff. judgment of Second Division, diss. Lord Salvesen) that for the purpose of ascertaining the profits for the accounting period from 7th March 1915 to 31st December 1915 the pounds 30,000 paid by the son to the trustees was a sum employed as capital in the business and not admissible as a deduction.
Viscount Haldane, Viscount Cave, Viscount Finlay, Lord Moulton, and Lord Sumner
[1921] UKHL TC – 12 – 266, [1921] UKHL 313, 58 SLR 313
Bailii, Bailii
Scotland
Income Tax
Updated: 12 November 2021; Ref: scu.632632