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Paul Alexander Clark (Her Majesty’s Inspector of Taxes) v The Trustees of The British Telecom Pension Scheme and Others: ChD 14 Oct 1998

The question was whether sub-underwriting commissions received by the Trustees are chargeable to tax under Case I of Schedule D and whether they are also liable to the additional rate of tax applicable to trusts. The investment managers appointed to manage the huge scheme assets were allowed to sub-underwrite their duties, and accounted for their commissions. The sub-underwriting was seen as a normal part of the investment management process, not itself as a means of making money. Was there a trade? It had all the hall marks of a trade. The intention of the party can be a relevant factor, but not overwhelming. In this case this was trading activity.

Judges:

Justice Lightman

Citations:

Times 16-Oct-1998, [1998] EWHC Ch 296

Links:

Bailii

Statutes:

Income and Corporation Taxes Act 1988 Sch D Case 1

Jurisdiction:

England and Wales

Citing:

CitedRansom v Higgs 1973
. .
Lists of cited by and citing cases may be incomplete.

Income Tax

Updated: 04 June 2022; Ref: scu.135880

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