Reynolds and Gibson v Crompton (H M Inspector of Taxes), Reynolds and Gibson v Inland Revenue: HL 26 Mar 1952

HL Income Tax, Schedule D, and Profits Tax-Profits of trade-Debt taken over at reduced valuation on change of partnership and subsequently recovered in full-Whether profit assessable.
A partnership of cotton brokers had as an asset of their business a debt owed by a customer incurred in the course of their trade. A change in the membership of the partnership gave rise to a technical dissolution of the old partnership and the new partnership acquired the assets and liabilities of the old partnership. The new partnership subsequently collected the debt.
Held: It was not liable to income tax income tax on it because the collection of the debt was not part of the new partnership’s trading operation and thus was not assessable to tax under Case I of Schedule D.

[1952] UKHL TC – 33 – 288, 33 TC 288, (1952) 31 ATC 184, [1952] 1 TLR 922, [1952] TR 169, [1952] 1 All ER 888
England and Wales
Cited by:
CitedShop Direct Group v Revenue and Customs SC 17-Feb-2016
The Court considered the interpretation of the sections which applied corporation tax to post-cessation receipts. Companies had received from the Inland Revenue substantial repayments of VAT together with interest. There had been reorganisations of . .

Lists of cited by and citing cases may be incomplete.

Income Tax

Updated: 10 January 2022; Ref: scu.560159