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HMRC internal manual

Business Income Manual

Wholly and exclusively: tax cases referred to in the guidance

Alphabetical order by name of the party

The table below identifies the:

  1. point at issue
  2. names of the parties
  3. BIM reference
  4. Tax case reference

for each of the cases referred to in the guidance material on wholly and exclusively.

Point at issue Names of the parties BIM reference Tax case reference
Cost of appeal to Special Commissioners/tribunal Allen v Farquharson Bros & Co BIM37840, BIM37850 17 TC 59
Building society demutualisation Alliance & Leicester plc v Hamer BIM37690 SpC242
Compensation for loss of office Bassett Enterprise Ltd v Petty BIM38350 21 TC 728
Business entertaining Bentleys, Stokes & Lowless v Beeson BIM37050, BIM37065, BIM37070, BIM37075, BIM37400, BIM37610, BIM37630, BIM37635, BIM37790, BIM38200, BIM38210, BIM38250 33 TC 491
Expenditure on a political pamphlet Boarland v Kramat Pulai Ltd BIM37035 35 TC 1
Charitable giving Bourne and Holingsworth Ltd v Ogden BIM37510 14 TC 349
Attendance at overseas conference Bowden v Russell & Russell BIM37610, BIM37630 42 TC 301
First look for specific statutory disallowance British Insulated and Helsby Cables, Ltd v Atherton BIM37400, BIM38330 10 TC 155
Profit related payments British Sugar Manufacturers Ltd v Harris BIM37830 21 TC 527
Subsistence Caillebotte v Quinn BIM37660, BIM37665, BIM37670, BIM37675, BIM37900, BIM37920 50 TC 222
Cost of defending anti-trust action Cattermole v Borax & Chemicals Ltd BIM38525 31 TC 202
Loan at interest to secure supplies; repayable by discount on those supplies Charles Marsden & Sons Ltd v CIR BIM37760, BIM37790 12 TC 217
Penalty for breach of wartime regulations CIR v Alexander von Glehn & Co Ltd BIM38520 12 TC 232
Going out of business CIR v Anglo Brewing Co Ltd BIM38310, BIM38320 12 TC 803
Changing company charter CIR v Carron Company BIM38275 45 TC 18
Redundancy costs CIR v Cosmotron Manufacturing Ltd BIM38315, BIM38320, BIM38390 70 TC 292
The legal approach to the wholly and exclusively test CIR v Dowdall O’Mahoney & Co Ltd BIM37035 33 TC 259
Penalty for breach of wartime regulations CIR v E C Warnes & Co Ltd BIM38515, BIM38520 12 TC 227
Loss by Scottish solicitor on loan of money CIR v Hagart and Burn-Murdoch BIM37770, BIM37775, BIM37780 14 TC 433
Compensation for loss of office CIR v Patrick Thomson Ltd BIM38360 37 TC 145
Meeting former owner’s obligations Cooke v Quick Shoe Repair Service BIM38330 30 TC 460
Excessive remuneration Copeman v William Flood & Sons, Ltd BIM37715 24 TC 53
Director’s defalcations Curtis v J & G Oldfield Ltd BIM37810 9 TC 319
Payment to retiring director following a dispute Deverell, Gibson & Hoare Ltd v Rees BIM37717 25 TC 467
Whether payements to children were remuneration Dollar v Lyon BIM37735, BIM37737 54 TC 459
Excessive remuneration Earlspring Properties Ltd v Guest BIM37740 67 TC 259
Circumstances where a court may set aside Commissioners’ determination Edwards v Bairstow & Harrison BIM37045, BIM37925, BIM37965, BIM38220, BIM38250, BIM38320 36 TC 207
Attendance at overseas conference Edwards v Warmsley Henshall & Co BIM37615, BIM37670, BIM37925 44 TC 431
Advances against non-specific supplies English Crown Spelter v Baker BIM37755, BIM37760 5 TC 327
Sponsoring a relative’s (sporting) ambitions Executive Network v O’Conner BIM37970 SpC56
Dividends paid to directors Eyres v Finnieston Engineering Co Ltd BIM37705 7 TC 74
Libel costs Fairrie v Hall BIM37300, BIM38530 28 TC 200
Payment of share of profits following sale of shares Faulconbridge v Thomas Pinkney & Sons Ltd BIM37730 33 TC 415
Settling with disaffected director G Scammell & Nephew Ltd v Rowles BIM38535 22 TC 479
Guarantee of associated company’s debts Garforth v Tankard Carpets Ltd BIM37065, BIM38210, BIM38285, BIM38320 53 TC 342
Compensation for loss of office George J Smith & Co Ltd BIM38380 45 TC 384
Redundancy on takeover George Peters & Co Ltd v Smith BIM38385 41 TC 264
Payment in lieu of notice Godden v A Wilson’s Stores (Holdings) Ltd BIM38390 40 TC 161
Defending civil action Golder v Great Boulder Proprietary Gold Mines Ltd BIM38540 33 TC 75
Contributions to an association to maintain prices Guest Keen & Nettlefolds Ltd v Fowler BIM37500 5 TC 511
Building society demutualisation Halifax plc v Davidson BIM37690 SpC239
Compromise settlement of action by former director Hammond Engineering Co Ltd v CIR BIM38550 50 TC 313
Argentine ‘substitute tax’ Harrods (Buenos Aires) Ltd v Taylor-Gooby BIM37055, BIM37060, BIM37300 41 TC 450
Rent paid to partner Heastie v Veitch & Co BIM38110, BIM38120 18 TC 305
Payments to trust for employees to buy shares Heather v P-E Consulting Group BIM38275 48 TC 293
‘Civilian’ clothing Hillyer v Leeke BIM37025, BIM37910 51 TC 90
Travelling expenses Horton v Young BIM37620, BIM37630, BIM37635, BIM37675 47 TC 60
Compensation for loss of office James Snook & Co Ltd v Blasdale BIM38340, BIM38380 33 TC 244
Solicitor guaranteeing client’s overdraft Jennings v Barfield BIM37770, BIM37775, BIM37780 40 TC 365
Subscription to a trade association Joseph Thompson & Sons Ltd v Chamberlain BIM37065 40 TC 657
Tax avoidance Kilmorie (Aldridge) Ltd v Dickinson BIM38400 50 TC 1
Defending charge of professional misconduct Knight v Parry BIM37960, BIM38545 48 TC 580
Money injected into subsidiary as condition for sale and rescue Lawson v Johnson Matthey plc BIM37075, BIM37795 65TC39
Subscription to trade association Lochgelly Iron and Coal Co Ltd v Crawford BIM37500 6 TC 267
Valuable shares issued at par to employees Lowry v Consolidated African Selection trust Ltd BIM37200 23 TC 259
Artistic director funding company as showcase Lunt v Wellesly BIM37785 27 TC 78
Partner’s removal expenses MacKinley v Arthur Young McClelland Moores & Co BIM38120, BIM38220 62 TC 704
Ordinary ‘civilian’ clothing Mallalieu v Drummond BIM37025, BIM37055, BIM37900, BIM37910, BIM37925, BIM37930, BIM37965, BIM37970, BIM38220 57 TC 330
Illegal profits from fruit machines Mann v Nash BIM38522 16TC523
Write-off of debt due from subsidiary Maple Ltd v Fir BIM37797 SpC104
Funding overseas subsidiary Marshall Richards Machine Co Ltd v Jewitt BIM37075, BIM37790, BIM38210 36TC511
Architect’s flat over office Mason v Tyson BIM37670, BIM37928, BIM37930 53 TC 333
Disputing a charge of gross misconduct McKnight v Sheppard BIM37965, BIM38500, BIM38520,BIM38522, BIM38530 71 TC 419
Domestic accommodation in public house consciously acquired for trade purposes only McLaren v Mumford BIM37670, BIM37930 69 TC 173
Costs of operating PAYE Meredith v Roberts BIM37060 44 TC 559
Compensation for loss of office Mitchell v B W Noble Co Ltd BIM37720, BIM37860, BIM38370, BIM38390 11 TC 372
Anti nationalisation campaign Morgan v Tate & Lyle Ltd BIM37055, BIM37060, BIM37065, BIM37300, BIM37910, BIM38210, BIM38275 35 TC 366
Asphalters guaranteeing exhibition in hope of work Morley v Lawford BIM37400, BIM37780 14 TC 229
Wife or civil partner’s wages Moschi v Kelly BIM37735 33 TC 442
Costs of private room to allow continuance of profession during course of medical treatment Murgatroyd v Evans-Jackson BIM37950 43 TC 581
Barrister, home to office travel Newsom v Robertson BIM37605, BIM37620, BIM37630, BIM37635, BIM37675, BIM37935 33 TC 452
Medical costs to treat condition acquired during course of profession Norman v Golder BIM37940, BIM37950, BIM37960 26 TC 293
Building society demutualisation Northern Rock plc v Davidson BIM37690 SpC241
Redundancy costs O’Keefe v Southport Printers Ltd BIM38320 58 TC 88
Write-off of debt due from subsidiary Odhams Press Ltd v Cook BIM37790, BIM38220 23 TC 233
Compensation for loss of office Overy v Ashford Dunn & Co Ltd BIM37860, BIM38370 17 TC 497
Loss on sale of property used as a temporary residence by employee Owen & Gadsdon v Brock BIM37725 32 TC 206
Factual assumptions which are insufficiently reliable Owen v Southern Railway of Peru Ltd BIM38395 36 TC 602
Cost of surgery to repair damaged finger Prince v Mapp BIM37945 46 TC 169
Subsistence and accommodation Prior v Saunders BIM37665,BIM37670, BIM37675 66 TC 210
Confiscation order R v Farquhar BIM38522 [2008] EWCA Crim 806
Tax avoidance Ransom v Higgs BIM38400 50 TC 1
Write-off of debt due from subsidiary Redkite Ltd v HMIT BIM37797 SpC93
Temporary loans made by brewer Reid’s Brewery Co Ltd v Male BIM37753, BIM37770 3 TC 279
For own trade or for subsidiary’s? Robinson v Scott Bader Co. Ltd BIM37065, BIM37070, BIM38250 54 TC 757
Meaning of ‘for the purposes of the trade’ Rushden Heel Co Ltd v Keene BIM37060, BIM37300 30 TC 298
Premiums on director’s life insurance Samuel Dracup & Sons Ltd v Dakin BIM37745 37 TC 377
Calling at supplier during home to office journey Sargent v Barnes BIM37630, BIM37635, BIM37935 52 TC 335
Overseas travel to see related business Sargent v Eayrs BIM37625 48 TC 573
Interest on overdrawn capital account Silk v Fletcher BIM37680 SpC239/00
Interest on overdrawn capital account Silk v Fletcher (no 2) BIM37680  
No differential use of hindsight Simpson v Jones BIM38560 44 TC 599
Compensation fund levies Smith v Lion Brewery Co Ltd BIM37055, BIM37300 5 TC 568
Accountancy fees allowed by concession Smith’s Potato Estates v Bolland BIM37060, BIM37065, BIM37075, BIM37840, BIM37850 30 TC 267
Accountancy fees allowed by concession Smith’s Potato Crisps (1929), Ltd v Commissioners of Inland Revenue BIM37850 30 TC 267
Defending partner against charge of conspiring to defraud Spofforth & Prince v Golder BIM37955, BIM37960, BIM38525 26 TC 310
Excessive remuneration Stott & Ingham v Trehearne BIM37707 9 TC 69
Architect investing in clients to secure business Stott v Hoddinott BIM37765 7 TC 85
Compensation paid to injured customer Strong & Co of Romsey v Woodifield BIM37055, BIM37060, BIM37300, BIM37840, BIM37850, BIM37910, BIM37955, BIM38510, BIM38515, BIM38520, BIM38530 5 TC 215
Write-off of debt due from subsidiary Sycamore BIM37797 SpC104
Payments for mutual insurance Thomas v Richard Evans & Co Ltd BIM37500 11 TC 790
Rent paid to overseas landlord, profit related Union Cold Storage Co Ltd v Adamson BIM37820 16 TC 29
Fire insurance on properties owned by US company controlled by the UK company’s shareholders Union Cold Storage v Jones BIM37075, BIM37200 8 TC 725
Licensed premises let at low rent in exchange for a ‘tie’ Usher’s Wiltshire Brewery Ltd v Bruce BIM37200, BIM38330 6 TC 399
Payment to terminate trade agreement Vodafone Cellular & Others v Shaw BIM37055, BIM38220 69 TC 376
Domestic accommodation in public house Wildbore v Luker BIM37600, BIM37930 33 TC 46
Solicitors annual conference Watkis v Ashford Sparkes & Harward BIM37670, BIM37925 58 TC 468
Payment to a director changing duties because of ill-health Wilson v Nicholson Sons & Daniels Ltd BIM37720 25 TC 473
Building society demutualisation Woolwich plc v Davidson BIM37690 SpC240