BIM38600 | Wholly and exclusively: tax cases referred to in the guidance

From HM Revenue & Customs · Business Income Manual

Alphabetical order by name of the party

The table below identifies the:

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