Simmons (as liquidator of Lionel Simmons Properties Ltd) v Inland Revenue Commissioners

[1980] 2 All ER 798

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(Decision by: Viscount Dilhorne)

Between: Simmons (as liquidator of Lionel Simmons Properties Ltd)
And: Inland Revenue Commissioners

Court:

Judges: Lord Wilberforce

Viscount DilhorneLord Salmon
Lord Scarman
Lord Roskill

Subject References:
Income tax
Profits
Trading receipts
Land
Disposal
Taxpayer acquiring land for development
Acquisition for building up a portfolio of investments sufficient for the flotation of a public company
Sale of land in view of deterioration of business prospects
Whether surplus on sale taxable as taxpayer's trading receipts

Case References:
Cunliffe v Goodman - [1950] 1 All ER 720; [1950] 2 KB 237, CA; 31(2) Digest (Reissue) 641, 5217
Edwards (Inspector of Taxes) v Bairstow - [1955] 3 All ER 48; [1956] AC 14; [1955] 3 WLR 410; 36 Tax Cas 207; 34 ATC 198; [1955] TR 209; 48 R & IT 534, HL; 28(1) Digest (Reissue) 566, 2089
Sharkey (Inspector of Taxes) v Wernher - [1955] 3 All ER 493; [1956] AC 58; [1955] 3 WLR 671; 36 Tax Cas 275; 34 ATC 263; [1955] TR 277; 48 R & IT 739, HL; 28(1) Digest (Reissue) 123, 363

Hearing date: 29, 30 April 1980
Judgment date: 19 June 1980

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Decision by:
Viscount Dilhorne

My Lords, giving the commissioners' conclusion that the sale of the properties in question was a sale of trading stock the most favourable consideration that I can, I am unable to find in the case stated and in their findings any justification for that conclusion.

I have had the advantage of reading in draft the speech of my noble and learned friend Lord Wilberforce. I agree with it and in my opinion, for the reasons he gives, this appeal should be allowed.