Business Income Manual

BIM35905 - Capital/revenue divide: tax cases and summing up: table of tax cases referred to

Alphabetical order by names of the party

The table below identifies the:

• point at issue,
• names of the parties,
• BIM page(s), and
• Tax case reference,
• for each of the cases referred to in the guidance material on the capital/revenue divide.

Point at issue	Names of the parties	BIM page(s)	Tax case reference
Payment for surrendering rights	A Consultant v HM Inspector of Taxes	BIM35535, BIM35600	SPC 180
Removing a commission agent	Anglo-Persian Oil Company Ltd v Dale	BIM35505, BIM35625, BIM35901, BIM35815	16 TC 253
Commission for a guarantee	Ascot Gas Water Heaters Ltd v Duff	BIM35580	24 TC 171
Restrictive covenant	Associated Portland Cement Manufacturers Ltd v Kerr	BIM35510, BIM35595	27 TC 103
Contribution to establish a pension fund	Atherton v British Insulated & Helsby Cables Ltd	BIM35010, BIM35320, BIM35401, BIM35505, BIM35550, BIM35590, BIM35625, BIM35901	10 TC 155
Compensation for loss of agency agreement	Barr, Crombie & Co Ltd v CIR	BIM35530, BIM35535	26 TC 406
Costs of loan finance	Beauchamp v F W Woolworth plc	BIM35580,	61 TC 542
Exclusivity tie	Bolam v Regent Oil Co Ltd	BIM35550, BIM35555, BIM35810, BIM35901	37 TC 56
Annual receipts for sharing know-how and secret processes for 10 years.	British Dyestuffs Corporation (Blackley) Ltd v CIR	BIM35705, BIM35720	12 TC 586
Replacement of football stand, capital or revenue?	Brown v Burnley Football and Athletic Co Ltd	BIM35435, BIM35485	53 TC 357
Accounting treatment inconsistent with the true facts	BSC Footwear Ltd v Ridgway	BIM35030	47 TC 495
Doctrine of the 'entirety'	Bullcroft Main Collieries Ltd v O’Grady	BIM35440, BIM35467	17 TC 93
Damage to land	Bullcroft Main Collieries Ltd v O’Grady	BIM35425	17 TC 93
Surrender of onerous lease	Bullrun v CIR	BIM35010, BIM35625	SPC 248
Compensation for delay in overhauling ship	Burmah Steam Ship Co Ltd v CIR	BIM35427, BIM35600	16 TC 67
Changing a partnership structure	C Connelly & Co v Wilbey	BIM35525	65 TC 208
Periodical payments linked to sales	CIR v 36/49 Holdings, Ltd (In Liquidation)	BIM35040, BIM35310	25 TC 173
Right to deposit material	CIR v Adam	BIM35305, BIM35315, BIM35901	14 TC 34
Gas pipes, repair or capital?	CIR v Auckland Gas	BIM35435, BIM35440, BIM35445, BIM35460, BIM35470	73 TC 266
Dairy herd Conversion scheme	CIR v Biggar	BIM35600	56 TC 254
Varying a company’s charter	CIR v Carron Company	BIM35301, BIM35320, BIM35505, BIM35565, BIM35901	45 TC 18
Legal analysis overrides the accounts as prepared	CIR v Gardner Mountain & D Abrumenil Ltd	BIM35030, BIM35210	29 TC 69
Share of profits paid for three years to retiring partner	CIR v Hogarth	BIM35315	23 TC 491
Share of profits paid for three years to buy out partner’s interest	CIR v Ledgard	BIM35315	21 TC 129
Periodical payments to finance a literary work	CIR v Mallaby-Deeley and Another	BIM35310, BIM35315	13 TC 153
Payment to another company to refrain from production	CIR v Nchanga Consolidated Copper Mines Ltd	BIM35510, BIM35635, BIM35901	Privy Council
Liabilities assumed on purchase of business	CIR v New Zealand Forest Research Institute	BIM35655	72 TC 628
Purchase of growing crop	CIR v Pilcher	BIM35410, BIM35901	31 TC 314
Lump sum receipt for know-how and services	Coalite & Chemical Products Ltd v Treeby	BIM35715	48 TC 171
Cost of pit sinking	Coltness Iron Co v Black	BIM35401, BIM35701, BIM35901	1 TC 287
Reverse premium	Commissioner of Inland Revenue v Wattie & Lawrence	BIM35625	72 TC 639
Alterations as a result of changed techniques	Conn v Robins Bros. Ltd	BIM35455, BIM35460, BIM35480	43 TC 266
Payment to previous owner’s creditors to secure supplies	Cooke v Quick Shoe Repair Service	BIM35540	30 TC 460
Cancellation of lease of an unprofitable branch	Cowcher v Richard Mills and Company Ltd	BIM35625	13 TC 216
Getting rid of a business manager	Croydon Hotel & Leisure Co Ltd v Bowen	BIM35535	SPC 101
Exam fees, capital or revenue?	Dass v Special Commissioner and others	BIM35660	[2006] EWHC 2491 (Ch)
Damages awarded to underwriters against managing agents	Deeny & others v Gooda Walker Ltd & others	BIM35600	68 TC 458
Royalties for publishing war diaries	Earl Haig’s Trustees v CIR	BIM35701	22 TC 275
Unsuccessful planning application	ECC Quarries Ltd v Watkis	BIM35210, BIM35320, BIM35625	51 TC 153
Payment for additional capital	European Investment Trust Co Ltd v Jackson	BIM35580	18 TC 1
Lump sum receipt for sale of secret processes and other information to foreign government	Evans Medical Supplies Ltd v Moriarty	BIM35705, BIM35710	37 TC 540
Farm drive resurfacing, capital or revenue?	G Pratt and Sons v HMRC	BIM35485	[2011] UKFTT 416 (TC)
Lump sum received by authoress for sale of copyright	Glasson v Rougier	BIM35725	26 TC 86
Compensation for restriction on trade assets	Glenboig Union Fireclay Co Ltd v CIR	BIM35010, BIM35600	12 TC 427
Sale of fixed or current assets?	Gloucester Railway Carriage and Wagon Company Ltd v CIR	BIM35429	12 TC 720
Purchase of mine 'tailings'	Golden Horseshoe (New) Ltd v Thurgood	BIM35405, BIM35901	18 TC 280
Payments for right to enter and diminution of value of land	H J Rorke Ltd v CIR	BIM35401	39 TC 194
Demutualisation costs	Halifax Building Society v Davidson	BIM35645	SPC 238
Opposing a patent renewal	Hallstroms Proprietary Ltd v The Federal Commissioner of Taxation	BIM35045, BIM35430, BIM35455, BIM35460, BIM35645	Australian Case
Payment to fund to enable staff to buy shares in company	Heather v P-E Consulting Group Ltd	BIM35035, BIM35210, BIM35901, BIM35910	48 TC 293
Payment for a monopoly by instalments	Henriksen v Grafton Hotel Ltd	BIM35620	24 TC 453
Claim to deduct a provision for future rents payable on vacant premises	Herbert Smith v Honour	BIM35030, BIM35210	72 TC 130
Payment to actor to not appear in films for a period	Higgs v Olivier	BIM35600	33 TC 136
Railway track repair, capital or revenue?	Highland Railway Co v Balderston	BIM35445, BIM35475	2 TC 485
Lifetime of implements	Hinton v Maden & Ireland Ltd	BIM35415, BIM35901	38 TC 391
Lump sum received by film writer to terminate contract	Household v Grimshaw	BIM35730	34 TC 366
Lump sum received by author for sale of copyright	Howson v Monsell	BIM35730	31 TC 529
Purchase of oil	Hughes v British Burmah Petroleum Co Ltd	BIM35401	17 TC 286
Incorporating a new company	J B Kealy v O’Mara (Limerick) Ltd	BIM35615	Irish Case
Sale of fixed or current assets?	J Bolson & Son, Ltd v Farrelly	BIM35429	34 TC 161
Dilapidations under a lease	Jackson v Laskers Home Furnishers Ltd	BIM35620	37 TC 69
Lump sums derived from transfer of manufacturing know-how	Jeffrey v Rolls-Royce Ltd	BIM35710	40 TC 443
Shares received for know-how	John & E Sturge Ltd v Hessel	BIM35720	51 TC 183
Payment for benefit of contracts with supplier	John Smith v Moore and Son	BIM35010, BIM35655	12 TC 266
Provision for maintenance	Johnson v Britannia Airways Ltd	BIM35210	67 TC 99
Compensation for preventing 'ribbon development'	Johnson v W S Try Ltd	BIM35600	27 TC 167
Loss of one of several agency agreements	Kelsall Parsons & Co v CIR	BIM35530	21 TC 608
Open cast mine	Knight v Calder Grove Estates	BIM35401	33 TC 447
Asset bought in defective condition	Law Shipping Co Ltd v CIR	BIM35450, BIM35455	12 TC 621
Money injected into subsidiary as a condition of sale	Lawson v Johnson Matthey plc	BIM35650, BIM35901	65 TC 39
Compensation for loss of use of jetty	London & Thames Haven Oil Wharves Ltd v Attwooll	BIM35600	43 TC 491
Alterations and improvements to building	Lurcott v Wakeley and Wheeler	BIM35435	1 KB 905
Lump sum received by author for sale of copyright. Expenses incurred whilst non-resident	Mackenzie v Arnold	BIM35730	33 TC 363
Obtaining release from mining lease	Mallett v The Staveley Coal & Iron Co Ltd	BIM35625, BIM35901	13 TC 772
Doctrine of the 'entirety'	Margrett v The Lowestoft Water & Gas Co Ltd	BIM35465	19 TC 481
Sharkey v Wernher not applicable to author’s rights	Mason v Innes	BIM35735	44 TC 326
Premium to renew lease	McTaggart v B & E Strump	BIM35810	10 TC 17
Are wallpaper pattern books plant?	McVeigh v Arthur Sanderson & Sons Ltd	BIM35810	45 TC 273
Unsatisfactory employee	Mitchell v B W Noble Ltd	BIM35590	11 TC 372
Anti nationalisation campaign	Morgan v Tate & Lyle Ltd	BIM35540, BIM35570	35 TC 367
Receipts for grant of licences and non-competition agreements	Murray v Imperial Chemical Industries Ltd	BIM35710	44 TC 175
Lump sum receipts for transfer of know-how	Musker v English Electric Co Ltd	BIM35715	41 TC 556
Asset bought in defective condition	Odeon Associated Theatres Ltd v Jones	BIM35450	48 TC 257
Size and importance of the work	Phillips v Whieldon Sanitary Products Ltd	BIM35440, BIM35485	33 TC 213
Railway track, repair or capital?	Rhodesia Railways Ltd v Collector of Income Tax, Bechuanaland Protectorate	BIM35440, BIM35570	[1933] AC 368
Payment in lieu of surface restoration	Robert Addie & Sons’ Collieries Ltd v CIR	BIM35425	8 TC 671
Waste dump reverted to the land	Rogers v Longsdon	BIM35405	43 TC 23
Tipping space	Rolfe v Wimpey Waste Management Ltd	BIM35605, BIM35625, BIM35901	62 TC 399
Acquisition cost of a business	Royal Insurance Company v Watson	BIM35655	3 TC 500
Abandonment expenditure	RTZ Oil & Gas Ltd v Elliss	BIM35420, BIM35625	61 TC 132
The 'entirety' is the premises	Samuel Jones & Co (Devonvale) Ltd v CIR	BIM35440, BIM35467	32 TC 513
Compensation for withdrawal of planning permission	Shadbolt v Salmon Estate (Kingsbury) Ltd	BIM35600	25 TC 52
Compensation for cancellation of order to build ships	Short Bros Ltd v CIR	BIM35600	12 TC 955
Sum paid to indemnify assignee of lease for dilapidations	Southern Counties Agricultural Trading Society Ltd v Blackler	BIM35630	SPC 198
Factual assumptions insufficiently reliable	Southern Railway of Peru Ltd v Owen	BIM35030, BIM35210	36 TC 602
Preserving title to assets	Southern v Borax Consolidated Ltd	BIM35510, BIM35540, BIM35570	23 TC 597
Exclusivity tie	Strick v Regent Oil Co Ltd	BIM35015, BIM35040, BIM35045, BIM35205, BIM35505, BIM35560, BIM35701, BIM35810, BIM35815, BIM35901	43 TC 1
Broker’s commission	Texas Land & Mortgage Co v Holtham	BIM35580	3 TC 255
Liabilities assumed on purchase of business	The City of London Contract Corporation Ltd v Styles	BIM35655	2 TC 239
Shares received for know-how	Thomsons (Carron) Ltd v CIR	BIM35720	51 TC 506
Application of accountancy standards to leasing	Threlfall v Jones Gallagher v Jones	BIM35201, BIM35810	66 TC 77
Gas pipes, repair or capital?	Transco plc v Dyall	BIM35445, BIM35470	SPC 310
Varying a lease	Tucker v Granada Motorway Services Ltd	BIM35320, BIM35420, BIM35625, BIM35901	53 TC 92
Establishing a rubber plantation	Vallambrosa Rubber Company Ltd v Farmer	BIM35305	5 TC 529
Compensation for terminating an agreement	Van den Berghs Ltd v Clark	BIM35020, BIM35035, BIM35530, BIM35535, BIM35585, BIM35625, BIM35730, BIM35901	19 TC 390
Getting rid of an onerous contract	Vodafone Cellular & Others v Shaw	BIM35530, BIM35585, BIM35625, BIM35901	69 TC 376
Doctrine of the 'entirety'	W Thomas and Co Pty Ltd v Federal Commissioner of Taxation	BIM35430	Australian case
Author’s receipts from sale of working papers, etc	Wain’s Executors v Cameron	BIM35735	67 TC 324
Buying out a potential rival	Walker v The Joint Credit Card Co Ltd	BIM35510, BIM35540, BIM35595,BIM35635, BIM35901	55 TC 617
Payment to change existing business structure or asset	Watney’s London Ltd v Pike	BIM35545	57 TC 372
Dairy herd Conversion scheme	White v G & M Davies	BIM35600	52 TC 597
Varying terms of a loan	Whitehead v Tubbs (Elastics) Ltd	BIM35575	57 TC 472
Treatment of interest paid	Wilcock v Frigate Investments Ltd	BIM35201	55 TC 530
No deduction for 'notional' repairs	William P Lawrie v CIR	BIM35465	34 TC 20
Shares received in exchange for know-how and non-competition agreement	Wolf Electric Tools Ltd v Wilson	BIM35710, BIM35720	45 TC 326