Where a trader takes stock from his business for private use or for use in another business which he owns, or where he transfers to his business stock which he owns in some other capacity than that of proprietor of that business, the transfer should be dealt with for taxation purposes as if it were a sale or purchase at market value. Thus, goods that a trader takes from his trading stock, for example, for the personal use and enjoyment of himself and members of his household, should be credited at market value.
[1955] 36 TC 275, [1956] AC 58
England and Wales
Citing:
Approved – Watson Brothers v Hornby 1942
. .
Cited by:
Cited – Ransom (Inspector of Taxes) v Higgs, etc HL 13-Nov-1974
A company had devised two elaborate schemes with a view to avoiding income tax. Lord Wilberforce discussed the definition of ‘trade’: ‘`Trade’ cannot be precisely defined, but certain characteristics can be identified which trade normally has. . .
Cited – Rangatira Limited v The Commissioner of Inland Revenue PC 2-Dec-1996
. .
Cited – Mason v Innes 1967
The court considered the taxation of gifts of literary or other professional works. . .
Cited – Maco Door and Window Hardware (UK) Ltd v Revenue and Customs HL 30-Jul-2008
The House was asked whether a warehouse used to store purchases made by the company from its parent company in Austria, was an ‘industrial building or structure’. It was agreed that the facility was used for the storage of materials for use in later . .
Lists of cited by and citing cases may be incomplete.
Income Tax
Updated: 16 December 2021; Ref: scu.259431