Perrin v Dickson
| Jurisdiction | England & Wales |
| Date | 1929 |
| Year | 1929 |
| Court | King's Bench Division |
Revenue - Income Tax - Annuity - Insurance - Educational Policy - Capital Repayment with or without Interest - Annual Instalments -
By a policy of assurance effected by the appellant with the Clergy Mutual Assurance Society to provide for his son's education the society, in consideration of six premiums of 90l. each, paid annually between 1912 and 1917, agreed to pay to him an annuity of 100l. each year for seven years as from September 29, 1920. If the son should die, the premiums were to be repaid to the appellant or his representatives without interest. The appellant duly received the annual amounts paid by the society for the seven years from 1920 to 1926, and assessments were made on him in respect of the full amount of these sums for income tax as on an annuity for these respective years under Sch. D. The Special Commissioners confirmed the assessments, and the appeal was from this decision:—
Held, that, as the principal money remained intact, the annua payments by the society did not constitute an annuity under the Income Tax Acts, and that income tax was only payable upon such part of them as consisted of interest.
CASE stated under Income Tax Act, 1918, s. 149, by Commissioners for Special Purposes of Income Tax Acts.
The material facts, taken from the case stated, were as follows: At a meeting of the Commissioners on April 16, 1928, the Right Rev. W. W. Perrin appealed against assessments under Sch. D to income tax in the sum of 150l. for each of the years ending April 5, 1922 to 1926 inclusive.
By a policy of assurance dated September 18, 1912, between the appellant and the Clergy Mutual Assurance Society, after reciting that the appellant desired to effect an assurance with the society for an annuity for and on behalf of his son, Michael Perrin, it was agreed that in consideration of premiums of 90l. 15s. 10d., payable yearly on September 18, from 1912 to 1917 inclusive, the society would pay to the guardian of Michael Perrin an annuity of 100l. for seven years. The first payment was to be made on September 19, 1920, and on every subsequent September 19 up to and including September 19, 1926, if Michael Perrin should live so long. It was further provided by the policy that in the event of the death of Michael Perrin the total amount of the premiums paid in respect of the assurance, after deduction of any amount that might have been received by way of annuity, but without interest, should be paid to the appellant or his representatives or assigns. A policy in similar terms, dated September 12, 1912, was entered into by the appellant with the society for an annuity for his daughter, Margaret Perrin, the premium being 33l. 7s. 6d. for six years, 1912–1917, and the annuity 50l. for five years from 1920 to 1924.
Evidence was given before the Commissioners that the sums payable were calculated so as to return to the appellant, in the event of the nominee living, the amount which the appellant had paid to the society, with compound interest at 3 per cent.
The appellant, as guardian of Michael Perrin and Margaret Perrin, duly received the sums payable under the two policies, and the...
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Commissioners of Inland Revenue v Church Comrs. for England
...on the facts of that case to reach the result that the so-called annuities consisted partly of capital. Similarly in Perrin v. Dickson [1929] 2 K.B. 85 and Inland Revenue Commissioners v. Mallaby-Deeley [1938] 4 All E.R. 818, the label was disregarded in favour of what the court regarded as......
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Commissioners of Inland Revenue v Church Commissioners for England
...Fletcher (1858) 3 H. & N. 769.] The Crown relies on the judgments of Rowlatt J. and Lord Hanworth M.R. in Perrin v. Dickson 14 T.C. 608; [1929] 2 K.B. 85; [1930] 1 K.B. 107 to resist any suggestion that Scoble v. Secretary of State for India 4 T.C. 618; [1903] A.C. 299 was decided on its pa......
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...of capital ( Secretary of State for India v. Scoble (1903) Appeal Cases, 299); and see Foley v. Fletcher 3 Hurlstone & Norman. 769 and Perrin v. Dickson (1930) 1 King's Bench, 107). If upon the true view of the facts the annual payments have the character of payments of capital, section 5......