Expenditure does not qualify for deduction if the object of the expenditure was to serve another private purpose in addition to the business purpose for which it was purportedly incurred.
HL Income Tax – Schedule D Case II – Computation of partnership profits – Large firm of Accountants – Reimbursement of removal expenses of partners required to move to another branch of firm – Whether deductible as expenditure incurred wholly and exclusively for purposes of the profession – Whether, in considering the purpose for which expenditure is incurred, a partnership firm is to be treated as an entity separate from the individual partners – Income and Corporation Taxes Act 1970, s 130(a).
Citations:
[1989] STC 898, [1990] 2 AC 239, [1989] UKHL TC – 62 – 704, [1990] 1 All ER 45, 62 TC 704, [1989] 3 WLR 1245, [1990] STC 898
Links:
Statutes:
Income and Corporation Taxes Act 1970 130(a)
Jurisdiction:
England and Wales
Citing:
Cited – Mallalieu v Drummond HL 27-Jul-1983
The taxpayer was a barrister. To comply with Bar guidance on court dress, she wore, in court and in and to and from chambers black dresses, suits and shoes and white blouses. The clothing were perfectly ordinary articles suitable for everyday wear. . .
Cited by:
Cited – Vodafone Cellular Ltd v G Shaw (Her Majesty’s Inspector of Taxes) CA 20-Mar-1997
The court considered the application of the ‘exclusively’ test for expenditure which was sought to be set off against tax. Examining the leading modern cases, Millett LJ said: ‘the following propositions may be derived. (1) The words for the . .
Cited – David Robson v Eric Mitchell (HM Inspector of Taxes) ChD 8-Jul-2004
The taxpayer sought capital gains tax relief of a loan to a business.
Held: To succeed in his claim the taxpayer had to establish that the indebtedness created was to be used entirely to serve the borrower’s business. . .
Cited – Anson v Revenue and Customs SC 1-Jul-2015
Interpretation of Double Taxation Agreements
This appeal is concerned with the interpretation and application of a double taxation agreement between the United Kingdom and the United States of America. A had been a member of an LLP in Delaware, and he was resident within the UK, but not . .
Lists of cited by and citing cases may be incomplete.
Income Tax
Updated: 11 June 2022; Ref: scu.199766