The Income Tax Act 1853 enacts-Section 2-‘For the purpose of classifying and distinguishing the several properties, profits, and gains for and in respect of which the said duties are by this Act granted, and for the purposes of the provisions for assessing, raising, levying, and collecting such duties respectively, the said duties shall be deemed to be granted and made payable yearly for and in respect of the several properties, profits, and gains respectively described or comprised in the several schedules contained in this Act, and marked respectively A, B, C, D, and E, and to be charged under such respective schedules-that is to say,’ Schedule B, ‘for and in respect of the occupation of all such lands, tenements, hereditaments, and heritages as aforesaid, and to be charged for every twenty shillings of the annual value thereof.’ Schedule D-‘For and in respect of the annual profits or gains arising or accruing to any person residing in the United Kingdom from any kind of property whatever . . and for and in respect of the annual profits or gains arising or accruing to any person residing in the United Kingdom from any profession, trade, employment, or vocation, whether the same shall be respectively carried on in the United Kingdom or elsewhere, and to be charged for every twenty shillings of the annual amount of such profits and gains.’
The above schedules replace Schedules B and D of the Income Tax Act 1842, but the cases and rules applicable to the Schedules B and D of that Act are still operative, and of these the following are the first and sixth cases under Schedule D:-First Case-‘Duties to be charged in respect of any trade, manufacture, adventure, or concern in the nature of trade, not contained in any other schedule of this Act.’ Sixth Case-‘The duty to be charged in respect of any annual profits or gains not falling under any of the foregoing rules, and not charged by virtue of any of the other schedules contained in this Act.’
The tenant and occupier of a mixed farm of 400 acres at a rent of pounds 580 kept a stallion which he used to serve his own mares on the farm, and also to serve mares belonging to others. The mares were either served at the farm or at other places where the stallion attended under the care of the owner’s servants. The owner was assessed under Schedule B of the Act of 1853 upon the rental of his farm as tenant thereof, and in the year of assessment his gross earnings from the stallion amounted to pounds 290. The Commissioners for the General Purposes of the Income Tax decided to assess the owner of the stallion upon the profits derived from its ownership under Schedule D of the Act of 1853, in respect that the use made by the owner of the stallion was a use that provided a profit that did not arise in respect of the occupation of his lands. Held that the question of the use made of the stallion was a question of fact, and that the Commissioners, decision was final.
Lord Buckmaster, Lord Finlay, Lord Dunedin, and Lord Atkinson
[1919] UKHL TC – 7 – 99, [1919] UKHL 224, 56 SLR 224
Bailii, Bailii
England and Wales
Income Tax
Updated: 20 January 2022; Ref: scu.632769
