A claim for relief was made by a parent in respect of a child who earned wages; the parent claimed to deduct from those wages the cost of the child travelling to and from work and of his midday meal.
Held: The child’s income was chargeable to tax under Schedule E and fell within Sch. 9, para. 7. ‘income in his own right’ within the terms of s. 212(4) of the Income Tax Act 1952 meant income computed in accordance with the Income Tax Acts: that is to say, income for income tax purposes.
Buckley J. observed: ‘It has been submitted on behalf of the Crown that ‘income’ in Sub-section (4) must mean income in the same sense that it means elsewhere in the Act, that is to say, income for Income Tax purposes; and my attention has been drawn to two cases, Ricketts v. Colquhoun . . and Sanderson v. Durbridge . . which establish that for the purpose of tax under Schedule E the taxpayer is not entitled to deduct from his income expenses which do not arise actually in the performance of his office or employment, such as the cost of travelling to and from his work or the cost of providing himself with food during that part of the day when he is at work. I think that that submission is sound. Indeed, if it were not so, it seems to me that it would be exceedingly difficult ever to arrive at the amount of income which the child is said to be entitled to in his own right, because it would be extremely difficult to determine precisely what expenditure really was so essential as to be a proper deduction. I think travelling expenses and the cost of providing himself with a midday meal is something which the child has to provide out of his income, not something which has to be deducted before ascertaining his income.’
Judges:
Biuckley J
Citations:
(1961) 39 TC 477
Statutes:
Jurisdiction:
England and Wales
Cited by:
Approved – Mapp (Inspector of Taxes) v Oram HL 23-Jul-1969
HL Income Tax – Child allowance – Income of child – Foreign employment – No remittance to United Kingdom – Whether child ‘entitled . . . to an income’ – Income Tax Act 1952 (15 and 16 Geo. 6 and 1 Eliz. 2, c. . .
Lists of cited by and citing cases may be incomplete.
Income Tax
Updated: 18 July 2022; Ref: scu.550366