Lomax v Newton
| Jurisdiction | England & Wales |
| Judgment Date | 21 July 1953 |
| Date | 21 July 1953 |
| Court | Chancery Division |
HIGH COURT OF JUSTICE (CHANCERY DIVISION)-
Income Tax, Schedule E - Deductions - Expenses - Income Tax Act, 1918 (8 & 9 Geo. V, c. 40), Schedule E, Rule 9.
A Territorial Army officer appealed against an assessment to Income Tax under Schedule E in respect of his pay, claiming that a deduction should be allowed under Rule 9, Schedule E, Income Tax Act, 1918, in respect of certain mess expenses, etc.
The General Commissioners decided that the following expenses had been incurred wholly, exclusively and necessarily in the performance of the officer's duties: (1) mess subscription, (2) share of mess guests expenditure, (3) payments to batman, (4) hire of camp furniture, (5) cost of hotel accommodation in excess of allowance, (6) cost of tickets to sergeants' dances, etc., and reduced the assessment by the sum of these expenses. The Crown demanded a case.
Held, that, except as to item (5), there was insufficient evidence to support the Commissioners' decisions.
Stated under the Income Tax Act, 1952, Section 64, by the Commissioners for the General Purposes of the Income Tax for the Division of Upper Strafforth and Tickhill in the County of York 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 Upper Strafforth and Tickhill in the County of York held on 28th November, 1951, at 10, Figtree Lane, Sheffield, for the purpose of hearing appeals, Major Peter Stuart Newton, M.C., T.D. (hereinafter called "Major Newton") appealed against an assessment made on him for the year 1950-51 under Schedule E of the Income Tax Act, 1918, in the sum of £54 being the amount of his pay as an officer in the Territorial Army.
2. The points at issue are:-
(i) Whether there was evidence before us upon which we, the Commissioners, could decide that certain expenses incurred by Major Newton were deductible from his said Territorial Army pay in accordance with Rule 9 of Schedule E of the Income Tax Act, 1918;
(ii) if there was such evidence, whether we were justified in law in reaching our decision hereinafter recorded.
3. Major Newton is a Territorial Officer, being second-in-command of The Hallamshire Battalion, a Territorial battalion of The York and Lancaster Regiment stationed in Sheffield, and he was represented before us by his Commanding Officer, Lt.-Col. D. B. Webster, D.S.O., T.D., A.C.A.
4. Major Newton claimed that wholly, exclusively and necessarily in the performance of his duties as an officer of The Hallamshire Battalion he was obliged to expend the following sums during the year ended 31st October, 1950.
£ |
s. |
d. |
|
1. Annual mess subscription |
8 |
0 |
0 |
2. Share of battalion mess guests expenditure for the year |
9 |
16 |
0 |
3. Payments to batman at weekend and annual camps |
3 |
10 |
0 |
4. Hire of camp furniture |
1 |
5 |
0 |
5. Amounts paid for hotel accommodation at conferences and exercises in excess of detention and ration allowances:- |
£ |
s. |
d. |
Harrogate-November, 1949 (2 days) |
1 |
10 |
0 |
" -March, 1950 (2 days) |
1 |
10 |
0 |
Buxton-May, 1950 (3 days) |
3 |
0 |
0 |
6 |
0 |
0 |
|
6. Share of cost of mess wedding present to a brother officer |
1 |
16 |
3 |
7. Annual regimental officers' dinner-ticket |
1 |
10 |
0 |
8. Cost of meals at ordinary officers' mess dinners |
6 |
0 |
0 |
9. Cost of single tickets at regimental officers' dances |
4 |
1 |
0 |
10. Cost of single tickets at regimental officers' dances for neighbouring units |
2 |
11 |
0 |
11. Cost of tickets at sergeants' and other ranks' dances, sergeants' annual dinner club, etc. |
2 |
15 |
0 |
£47 |
4 |
3 |
and that the expenses so incurred should, in accordance with Rule 9 of Schedule E of the Income Tax Act, 1918, be deducted from the amount of the emoluments of the officer and tax assessed only on the balance.
5. Major Newton gave evidence before us as follows:-
(a) The annual mess subscription was a payment which all officers in his battalion were required to make. The amount varied with each rank. £8 was the amount required of officers of his rank. The proceeds of the subscriptions were used to provide a mess, the Government making no provision for a mess;
(b) the cost of entertaining the official regimental guests of the battalion was borne by the officers in accordance with their rank, and the sum of £9 16s. was the amount which Major Newton was required to contribute for this purpose;
(c) the employment of a batman and the hire of camp furniture were essential to the performance of Major Newton's duties, and the expenses thereof were wholly and exclusively incurred in the performance of the said duties;
(d) Major Newton had been required to attend courses of instruction, conferences, and tactical exercises without troops at weekends. These matters were organised usually by the division of which his battalion formed part and the accommodation for the officers taking part was arranged by the divisional staff. Officers were required to stay in certain specified hotels during the course, conference or T.E.W.T. A...
To continue reading
Request your trial
-
Hamerton v Overy (HM Inspector of Taxes)
... ... Held, that the Appellant was not entitled to initial or annual allowances in respect of the car and that, following the decision in Lomax v. Newton, 34 T.C. 558, no deduction could be allowed for the expenses claimed ... CASE Stated under the Income Tax Act, 1952, Section 64, by the ... ...
- Fitzpatrick v Commissioners of Inland Revenue (No.2)
-
TC02986: Michael Wardle
...such a suggestion was not supported by the decision of the Employment Tribunal. [14]After referring us to Lomax (HMIT) v NewtonTAX(1953) 34 TC 558, where Vaisy J had said (at p. 562) of rule 9 of schedule E of the Income Tax Act 1918 which, like Income Tax (Earnings and Pensions) Act 2003 s......