The Revenue was unable to charge to income tax a holder of gilts who, by a well-timed sale just before payment of a half-yearly instalment of interest, in effect turned his accrued income into a capital gain. Rowlatt J said that: ‘The result is that nobody on the super tax level, who has not more money than appreciation of income tax law, will ever buy a security that is full of dividend, because in doing so he is buying super tax; and that a man on the super tax level, if he wants to sell a security, had better sell when it is full of dividend, because then he is selling super tax.’
Rowlatt J
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Cited by:
Cited – Revenue and Customs v DCC Holdings (UK) Ltd SC 15-Dec-2010
The taxpayer had entered into a ‘repo’ loan to its bank, agreeing to purchase a block of gilt edged securities, and to resell them at a later date at a fixed figure. The profit and figures included an allowance for the interest payments to be made. . .
Lists of cited by and citing cases may be incomplete.
Updated: 16 October 2021; Ref: scu.428302
