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BAILII OpenLaw - Tax
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Subject: Tax Law

Compiled By: Amy Lawton

Last Updated: 23 November 2022

BAILII OpenLaw supports legal education by making leading cases freely and openly available on the internet. The Tax Law list is current up to the Last Updated date above and may not include recent decisions. If the citation column does not include a hyperlink, then copyright restrictions prevent BAILII from publishing the judgment (missing cases may be available on other commercial/paywalled sites). Please submit all comments, corrections, or suggested revisions via the BAILII Feedback form.

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Number Case Citation Court Level Summary
1 Apple and Pear Development Council v CEC (1988) C-102/96;
[1988] EUECJ R-102/86;
EU:C:1988:120		 European Court of Justice (EUECJ) VAT - there needs to be consideration for a supply to fall within the scope of VAT and there must be a direct link between the payment and the supply.
2 Barclays Mercantile Business Finance v Mawson [2004] UKHL 51 House of Lords Tax Avoidance - a purposive interpretation approach to be taken with tax avoidance.
3 Bentleys Stokes & Lowless v Beeson (Inspector of Taxes) [1952] 2 All ER 82 Court of Appeal Income Tax - interpretation of 'wholly and exclusively' for allowable expenditure. A distinction drawn between a double purpose or a single purpose with an incidental benefit; the latter is allowable.
4 British Insulated and Helsby Cables Ltd v Atherton (Inspector of Taxes) [1926] AC 205 House of Lords Income Tax - allowable expenditure and the distinction between income expenditure and capital expenditure. Capital expenditure being an enduring asset for the benefit of the trade.
5 Buccleuch (Duke) v IRC [1967] 1 AC 506 (ICLR) House of Lords Inheritance Tax - when valuing a large estate, it must be split into its natural parts. Each part should be valued on the open market without considering the effect of putting multiple parts on the market at once. Here, there were 486 natural parts to the estate and the prudent seller would sell them separately as that would attain the higher value.
6 Capcount Trading v Evans (Inspector of Taxes) [1993] STC 11 Court of Appeal Capital Gains Tax - where an asset is bought or disposed of in a foreign currency (i.e. not sterling), then the exchange rates for the acquisition date and/or disposal date should be used to convert the foreign currency into sterling.
7 CIR v Crossman
CIR v Mann		 [1937] AC 26 (ICLR) House of Lords Inheritance Tax - valuation of shares in an unquoted company is price which would be realised in the open market at the date, but on the assumption that the buyer would be subject to any restrictions. Based on estate duty.
8 CIR v Duke of Westminster [1936] AC 1 House of Lords Tax Avoidance - previous approach to tax avoidance: taxpayers are taxed according to the legal substance of a transaction, not the economic effect; to be contrasted with the Ramsay principle and cases that have followed.
9 College of Estate Management v CEC [2005] UKHL 62 House of Lords VAT - multiple supplies. Where there are multiple supplies it is necessary to consider the supply from the customer's point of view and consider what they are buying; this will determine the main characteristic of the supply for the purpose of identifying the applicable VAT rate.
10 Conservative and Unionist Central Office v Burrell [1982] 1 WLR 522;
55 TC 671		 Court of Appeal (EWCA Civ) Corporation Tax - whether investment income of a political party falls within the charge to corporation tax; unincorporated associations and corporation tax.
11 Customs and Excise Commissioners v Blackpool Pleasure Beach Co [1974] 1 WLR 540 (ICLR) High Court (EWHC QB) VAT - travel can be zero rated under VAT. However, a rollercoaster does not constitute travel for these purposes as there is effectively no travel: you get off at the same point as you get on.
12 Customs and Excise Commissioners v Westmorland Motorway Services Ltd [1998] STC 431 Court of Appeal VAT - when considering the value of the supply for VAT purposes, if there is an objective price attributed by both parties, then this is the value of the supply. In this case, a coach driver would receive a free meal if they stopped with a minimum amount of passengers for a minimum amount of time: here, the value was the menu price.
13 De Beers Consolidated Mine Ltd v Howe [1906] AC 455
[1906] UKLawRpAC 41		 House of Lords Tax avoidance; International Tax - tax avoidance and the determination of corporate residence. To determine whether a company is resident in the UK, we should look to where the company "keeps house and does business".
14 Earl of Ellesmere v Commissioners of Inland Revenue [1918] 2 KB 735 (ICLR) High Court (EWHC KB) Inheritance Tax - where there is an estate consisting of different bits of property, the value of property for the purposes of Inheritance Tax is the aggregate of the prices that all elements of the property would have attained had they been broken up into parts and sold in the most beneficial manner - i.e., the best price that could be attained. Based on Estate Duty.
15 Edwards v Bairstow and Harrison [1956] AC 14 House of Lords Procedure - precedent and rules surrounding the review of findings of fact by higher courts; what amounts to a trade for Income Tax and ITTOIA.
16 Edwards v Clinch [1982] AC 845 House of Lords Income Tax - an office for the purposes of ITEPA must involve a degree of continuance and of independent existence.
17 Farmer v Glyn-Jones [1903] 2 KB 6 (KB)
[1903] UKLawRpKQB 88		 Divisional Court (EWHC KB) Statutory interpretation - stamp duty; statutory interpretation of tax exemptions
18 Goodwin v Curtis (Inspector of Taxes) [1998] STC 475 Court of Appeal Capital Gains Tax - considers the meaning of main residence under principal private residence relief. Temporary occupation is not enough although it is the intention of the taxpayer rather than the length of occupation that is important.
19 Great Western Railway Co v Bater (1922) 8 TC 231;
[1920] 3 KB 266 (ICLR)		 House of Lords Income Tax - employment status; whether the taxpayer in an office or employment of profit; also considered statutory interpretation.
20 Ingram v Inland Revenue Commissioners [2000] 1 AC 293 House of Lords Inheritance Tax - lease carve out schemes. A gift with reservation applies when a benefit is derived from the gifted property. Thus, s.102 did not apply to lease carve out schemes, which were carved out before gifting - allowing the donor to keep the reversionary interest. Subsequently covered by s.102A FA 1986.
21 Inland Revenue Commissioners v George [2003] EWCA Civ 1763 Court of Appeal (EWCA Civ) Inheritance Tax - business property relief was available to a caravan site that provided utilities, sewage, and eating and shopping facilities to guests. This was sufficient to render the business not wholly or mainly of the holding of investments under s.105(3) Inheritance Tax Act 1984. Contrast with Weston v Inland Revenue Commissioners.
22 Law Shipping Co Ltd v Inland Revenue Commissioners [1924] SC 74;
[1923] SLR 66		 Court of Session (Inner House) Income Tax - when a repair is so extensive it amounts to a renewal and is capital expenditure, thus not allowable expenditure in the computation of profits for Income Tax (contrast this with the Odeon case).
23 Lewis (Inspector of Taxes) v Rook [1992] 1 WLR 662 (ICLR) Court of Appeal Capital Gains Tax - considers the meaning of part of a dwelling house for the purposes of principal private residence relief. A proximity test applied to consider whether the outbuilding was within the curtilage of and appurtenant to the main building.
24 Lex Services Plc v Customs and Excise Commissioners [2003] UKHL 67 House of Lords VAT - when considering the value of the supply for VAT purposes, if there is an objective price attributed by both parties, then this is the value of the supply. This can be to the detriment of the supplier, where, for instance, they have over inflated a part exchange value instead of giving a discount.
25 Limmer Asphalte Paving Co Ltd v Inland Revenue Commissioners [1872] UKLawRpExch 23
(1871-72) LR 7 Ex 211		 Court of Exchequer Stamp Duties - the liability of an instrument to a stamp duty arises when the instrument is executed. The nature of the instrument is determined by its legal effect once executed.
26 Longridge on Thames v HMRC [2016] EWCA Civ 930 Court of Appeal (EWCA Civ) VAT - if supplies are being made for consideration on a permanent basis, then this constitutes 'in the furtherance of business' (or economic activity). The purpose of the activity is irrelevant.
27 Lynall v Inland Revenue Commissioners [1972] AC 680 House of Lords Inheritance Tax - when valuing property for Inheritance Tax, the prudent buyer would only have information that was publicly available. Confidential, not available information should not be taken into account.
28 Mallalieu v Drummond [1983] 2 AC 861 (ICLR) House of Lords Income Tax - allowable expenditure that is 'exclusively for the purposes of the trade'; smart clothing provides a double benefit of warmth and decency (as well as dressing for work) and is not exclusively for the purposes of the trade.
29 Marren (Inspector of Taxes) v Ingles [1980] 1 WLR 983 House of Lords Capital Gains Tax - There is no discount for a postponement in consideration. Where contingent consideration is not ascertainable at the time of disposal, an actuarial value is applied to the value of the consideration; should the contingent payment then materialise, this will be a second disposal of the right to the contingent consideration.
30 McKnight (Inspector of Taxes) v Sheppard [1999] 1 WLR 1333 House of Lords Income Tax - whether defence costs and fines are allowable income expenditure. There is a public policy argument against the fine but the defence costs could amount to 'wholly and exclusively for the purpose of the trade'.
31 Moore v Griffiths (Inspector of Taxes) [1972] 1 WLR 1024 (ICLR) High Court (EWHC Ch) Income Tax - bonus payments as an accolade; whether a payment to members of the England football team after winning the World Cup was taxable.
32 Odeon Associated Theatres Ltd v Jones (HM Inspector of Taxes) (1971) 48 TC 257 Court of Appeal Income Tax - taxable profits and accounting principles; when a repair amounts to income expenditure and is thus allowable expenditure in the computation of profits for Income Tax (as opposed to capital expenditure).
33 Pepper (Inspector of Taxes) v Daffurn [1993] STC 466;
(1993) 66 TC 68		 High Court (EWHC Ch) Capital Gains Tax - what constitutes part of a business for business asset disposal relief. It must bring to an end a definable part of the business, here a change from beef cattle to grazing cattle was sufficient.
34 Pepper v Hart [1993] AC 593 House of Lords Principles of tax - statutory interpretation; statements recorded in Hansard may be admitted in evidence for statutory construction where conditions are satisfied; in house benefits for Income Tax.
35 Procter & Gamble UK v HMRC [2009] EWCA Civ 407 Court of Appeal (EWCA Civ) VAT - this case illustrates the factual nature of zero-rating in VAT for the excepted items in the Value Added Tax Act 1994 (in this case under the zero rating rules for food). Specifically, here, that Pringles were "similar to potato crisps" and "made from the potato". As such, they fell under the excepted items and were not zero-rated.
36 R v CIR ex parte Commerzbank AG [1993] EUECJ C-330/91;
C-330/91;
EU:C:1993:303;
[1993] STC 605		 European Court of Justice (EUECJ) International Tax - interpretation of double taxation conventions and discrimination on grounds of residence in UK and EU law.
37 R v Hampden (1637) 3 St Tr 825 King's Bench/ Court of Exchequer Principles of tax - ship money; necessity; individual property rights; the collective good; tax and the constitution; royal prerogative.
38 Randall v Plumb [1975] 1 WLR 633 (ICLR) High Court (EWHC Ch) Capital Gains Tax - There is no discount for a postponement in consideration. However, should consideration subsequently prove irrecoverable, this can be offset/a rebate claimed.
39 Revenue Customs Commissioners v Loyalty Management UK Ltd [2013] UKSC 15 Supreme Court VAT - input tax. Where an input (VAT paid by the supplier) is connected to the business, with the view to it being incorporated in its economic activities, then the input tax can be claimed.
40 Ricketts v Colquhoun (Inspector of Taxes) [1926] AC 1 (ICLR) House of Lords Income Tax - travel expenses and the interpretation of 'in the performance'.
41 Rolfe (Inspector of Taxes) v Nagel [1982] STC 53;
(1981) 55 TC 585		 Court of Appeal Income Tax - what constitutes receipts of a trade; a payment in lieu of damages to preserve good relationships was taxable as it was considered compensation for otherwise unremunerated work.
42 Rosgill Group Ltd v CEC [1997] 3 All ER 1012 Court of Appeal VAT- the value of the consideration for the purposes of VAT and non-cash consideration. Where parties objectively attribute a value to the supply (e.g. a catalogue price), this will be the value of the supply for VAT.
43 Rysaffe Trustee Co (CI) v Inland Revenue Commissioners [2003] EWCA Civ 356 Court of Appeal (EWCA Civ) Inheritance Tax - settled property. This case considered how to approach multiple settlements and whether there is simply one settlement that encompasses all, or distinct settlements. The associated operations rule applies where there is no relevant disposition at all.
44 Sharkey (Inspector of Taxes) v Wernher [1956] AC 58 (ICLR) House of Lords Income Tax - where a person who carries on a trade disposes of their own stock by giving it to themselves for their own enjoyment, they must include the market value of the stock as income for the purposes of income tax.
45 Shilton v Wilmshurst (Inspector of Taxes) [1991] STC 88 House of Lords Income Tax - an emolument is paid as a reward for past services, an inducement to continue services, or as an inducement to provide services in the future.
46 Sub One Ltd (Subway) v HMRC [2014] EWCA Civ 773 Court of Appeal (EWCA Civ) VAT - when considering whether there is a supply in the course of catering for the purposes of identifying the applicable rate for a food supply, an objective test should be applied. Here, the supply of toasted subway sandwiches were supplied to be eaten hot. The Court of Appeal dismissed prior approaches that used a subjective test and considered the intention of the supplier.
47 Taylor v Good (Inspector of Taxes) [1974] 1 WLR 556 (ICLR) Court of Appeal Income Tax - badges of trade and what amounts to a trade for income tax purposes. A common sense approach applied.
48 Thomas Gibson Bowles v Bank of England [1912] UKLawRpCh 122;
[1913] 1 Ch 57;
6 TC 136		 High Court (EWHC Ch) Principles of tax - tax must be introduced by an Act of Parliament; in this case a resolution has no authority for collecting taxes.
49 Unit Construction Co Ltd v Bullock [1960] AC 351 (ICLR) House of Lords International Tax - when looking at whether a company is resident in the UK, this case considered where the power to control is exercised. Despite the subsidiary companies being registered in Kenya, decisions were made from the UK when the subsidiaries got into difficulty, meaning that they were UK resident. Compare Wood v Holden.
50 Van den Berghs Ltd v Clark (Inspector of Taxes) [1935] AC 431 House of Lords Income Tax - whether compensation provided for the loss of a contract (a non-physical asset) constitutes income for income tax purposes; need to consider the nature of the contract and whether it was one of many contracts.
51 Weston v Inland Revenue Commissioners [2000] STC 1064 High Court (EWHC Ch) Inheritance Tax - business property relief was not available to a residential caravan site; this constituted a business wholly or mainly of the holding of investments under s.105(3) Inheritance Tax Act 1984.
52 Whicker v Hume [1858] EngR 991;
[1858] 7 HLCas 124		 House of Lords International Tax - an individual is domiciled in the jurisdiction where they are deemed by law to have their permanent home. Domicile is an important stage for tax law; the first question being whether a person is domiciled in the UK.
53 Whitney v Inland Revenue Commissioners [1926] AC 37 House of Lords International Tax - a resident of the UK is taxed wherever their income is derived from as they enjoy the protection of their person and property from UK laws; a non-resident is taxed on income derived from the UK as they enjoy the protection of that property from UK laws.
54 Wood v Holden [2006] EWCA Civ 26 Court of Appeal (EWCA Civ) International Tax - when determining whether a company is resident in the UK, there is an important difference between actually taking control and being able to influence those who have control. Only the former would satisfy the common law test of central management and control.
55 WT Ramsay v Commissioners of Inland Revenue [1982] AC 300 House of Lords Tax avoidance - shift away from Westminster principle; statutory interpretation; courts to look at the whole transaction to determine tax avoidance rather than the individual components where there are pre-arranged, artificial steps to save tax; the Ramsay principle.
56 Zim Properties Ltd v Proctor (1985) 58 TC 371 High Court (EWHC Ch) Capital Gains Tax - meaning of an 'asset'; intangible assets fall within the scope of Capital Gains Tax where they can be turned to account.
57 Zipvit Ltd v The Commissioners for Her Majesty's Revenue and Customs [2022] EUECJ C-156/20;
EU:C:2022:2		 European Court of Justice (EUECJ) VAT - input tax. This case focused on the interpretation of Article 168 of the VAT Directive. Specifically, whether Zipvit could claim the input tax for VAT that was incorrectly not paid at the time of the supply.

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