Law:

Section:

Income-tax, Schedule D-Purchase and sale of land- Whether an adventure in the nature of trade-Held yes. The Respondent was employed by a building company at a salary of £520 a year. Early in 1962 one of the directors told him that the company would be prepared to sell for £15,000 a plot of 6% acres which had planning permission but had not been developed because of drainage difficulties; it was producing no income from rents. The Respondent asked if he could buy it if he could raise the price and was told that he could. His capital resources amounted to £2,150. It was his intention to resell the land as soon as possible and not to develop it himself. The Respondent did not advertise the land for sale or place it in the hands of agents, but he approached three companies, and also investigated the possibility of borrowing the purchase price from relatives with the idea of selling when the problem of drainage was solved. On 28th March, 1962 he contracted to sell the land to one of the above-mentioned companies for £25,000; on 5th April, 1962 he contracted to buy it from the building company. He had never before sold property which he had bought for that purpose. On appeal against an assessment to income-tax under Case I of Schedule D for the year 1961-62 in respect of the profit on the sale, the General Commissioners found, on the analogy of Commissioners of Inland Revenue v. Reinhold [3. T.C. 3891, that the purchase and sale, being an isolated transaction were not adventure in the nature of trade. Held, that the purchase and sale were an adventure in the nature of trade. Case distinguished:- Commissioners of Inland Revenue v. Reinhold 34 T.C. 389; 1953 S.C. 49. Case Stated under s. 64 of the Income-tax Act, 1952 by the Commissioners for the General Purposes of the Income-tax for the Division of Off low South in the County of Stafford for the opinion of the High Court of justice. 1. At a meeting of the Commissioners for the General Purposes of the Income-tax for the Division of Off low South in the County of Stafford held on 19th November, 1968 at Kelvin 1-louse, 23 Lichfield Street. Walsall. Ronald Jack Heath (hereinafter called Mr. Heath) appealed against two…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492