Corbett v Inland Revenue Commissioners

[1937] 4 All ER 700

---

Corbett
v Inland Revenue Commissioners

Court:

Judges: Sir Wilfrid Greene MR
MR, Romer LJ
MacKinnon LJ

Subject References:
Income Tax
Sur-tax
Residuary life tenant
Sums credited to residuary life tenant during period of administration

Case References:
Allhusen v Whittell - (1867) LR 4 Eq 295; 23 Digest 464, 5358; 36 LJCh 929; 16 LT 695
Barnardo's Homes v Income Tax Special Comrs - [1921] 2 AC 1; 23 Digest 394, 4653; 90 LJKB 545; 125 LT 250; 7 Tax Cas 646
Marie Celeste Samaritan Society of London Hospital v Ireland Revenue Comrs - (1926) 43 TLR 23; Digest Supp; 11 Tax Cas 226
Wahl v Inland Revenue Comrs - (1933) 149 LT 203; Digest Supp; 17 Tax Cas 744
Sudeley (Lord) v A-G - [1897] AC 11; 23 Digest 463, 5354; 66 LJQB 21; 75 LT 398, affg SC; [1896] 1 QB 354
Re McEuen, McEuen v Phelps - [1913] 2 Ch 704; 23 Digest 464, 5359; 83 LJCh 66
sub nom Re McEwen, McEwen v Phelps - 109 LT 701
Re Wills, Wills v Hamilton - [1915] 1 Ch 769; 23 Digest 465, 5363; 84 LJCh 580; 113 LT 138

Hearing date: 9, 10 December 1937
Judgment date: 13 December 1937

---

The appellant was assessed to sur-tax for the year ending 5 April 1935, in a sum which included a sum of £17,073, being the gross equivalent of a sum of £13,600 13s 9d, placed to the credit of the appellant's wife by the executors of her late father's will, under which she was entitled to three-fifths of the residue of his estate for life. The appellant's wife's father died on 24 April 1934, and the residue was not, and could not have been, ascertained till 7 May 1935. There was nothing to show whether the sums were the result of a realisation of capital or income assets, but the income arising from the estate during the period of administration was insufficient to pay the expenses of administration:-

Held

the sums credited to the appellant's wife did not attract sur-tax, and the assessment on the appellant ought to be reduced accordingly.

Decision of Lawrence J ( [1937] 3 All ER 808 ) affirmed.

Notes

The Court of Appeal have dismissed this appeal from Lawrence J, holding, as he did, that the case is governed by the previous decisions in Barnardo's Homes v Income Tax Special Comrs, and Marie Celeste Samaritan Society of London Hospital v Inland Revenue Comrs. Romer LJ, however, has said that if he had not felt himself bound by authority, he might have arrived at the opposite conclusion.

As to Residuary Legatees and Income Tax, see Halsbury (Hailsham Edn), Vol 17, pp 256, 257, paras 521, 522; and for Cases, see Digest, Supp, Income Tax, Nos 483a, 673c, 673d.

Appeal

Appeal by the Inland Revenue Commissioners from an order of Lawrence J, dated 29 July 1937, and reported in [1937] 3 All ER 808 . The facts are fully stated in the judgment of Sir Wilfrid Greene MR.

Appeal dismissed with costs.