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HMRC internal manual

Business Income Manual

Miscellaneous income: particular sources: tolls

S687-S689 Income Tax (Trading and Other Income) Act 2005, S979-S981 Corporation Tax Act 2009

Income from tolls, dues etc which arises because the taxpayer owns or occupies the land is taxed as trading income: see BIM60201.

Profits derived from tolls, dues etc which do not arise from the ownership or occupation of lands etc and therefore are not taxable as trading income are taxable as miscellaneous income under the sweep-up provisions.

In the case of CIR v The Forth Conservancy Board [1931] 16TC103 the Conservancy Board was empowered to levy dues on vessels, goods and passengers coming within its jurisdiction.

In the House of Lords it was held that the Conservancy Board’s surplus revenues from these dues were profits within the sweep-up provisions. It was not disputed that the assessment could not be greater than the surplus of the dues over the Conservancy Board’s expenses.