TRUSTEES of THE MARY CLARK HOME v ANDERSON (Surveyor of Taxes)
| Jurisdiction | England & Wales |
| Judgment Date | 30 June 1904 |
| Date | 30 June 1904 |
| Court | King's Bench Division |
NO. 265.-IN THE HIGH COURT OF JUSTICE (KING'S BENCH DIVISION).-
Income Tax, Schedule A, and Inhabited House Duty.-Rule No. VI., of Schedule A in Section 61 of the Income Tax Act, 1842, and Case IV. of the exemptions in Schedule B to the House Tax Act, 1808. A home for ladies in reduced circumstances. A person to be an inmate must be 50 years of age or upwards, the unmarried daughter or sister, or the widow, of a man who has been engaged in some professional or mercantile pursuit, and must be in the actual enjoyment of from £25 to £55 a year (these limits being subject to alteration by the Board of Management). Each inmate is entitled to the joint use of the common rooms, and to the exclusive use of one or two rooms unfurnished, and is provided free of cost with coal, gas and attendance, but must provide her own furniture, food, clothing, washing and medical attendance. The food is cooked and served by the staff. The expenses of the Home are entirely provided for by endowment.
Held, that the Home may fairly be deemed to be an "almshouse" for the purposes of Income Tax, and a "house provided for the reception or relief of poor persons," for the purposes of Inhabited House Duty, and that the Institution is entitled to the benefits under both Acts.
At a meeting of the Commissioners for General Purposes of the Income Tax Acts acting for the division of Prescot in the County of Lancaster held at the County Sessions House Liverpool on the 15th October 1903, William Cooper appealed on behalf of the Institution called the Mary Clark Home against assessments of £3 17s. 1d. for Inhabited House Duty on the said Mary Clark Home for the year ending 5th April 1902 and £5 12s. 6d. for the like duty on the same Home for the year ending 5th April 1903 and claimed exemption under 48 Geo. III. c. 55 Schedule B. Case IV "Any hospital…or house provided for the reception or relief of poor persons." The sum of £3 17s.1d. for the year ending 5th April 1902 is a proportion of the House Duty for that year as from the 29th July 1901 (when the Home was vested in the Trustees as after mentioned) and the 5th April 1902.
The Mary Clark Home is an Institution founded and endowed by Mrs. Eliza Jane Clark in memory of her mother Mrs. Mary Clark and was conveyed to the trustees in fee simple by deed dated 29th July 1901 duly enrolled in the Supreme Court of Judicature according to the tenor of the Statute made for that purpose. Upon trust and to the intent and in order that the same hereditaments might at all times thereafter be appropriated and used as and for a Home or Institution to be called "The Mary Clark Home" for Ladies in reduced circumstances and under such rules and regulations for the establishment and management thereof and of the intended endowment fund mentioned in the deed as the trustees or the survivors or survivor of them or the executors or administrators of such survivor or other the trustees or trustee for the time being of the deed or in case of difference the majority of them should from time to time (but during the life of the said Eliza Jane Clark with her concurrence) approve of and frame or create alter or amend.
A copy of the rules is herewith
The material ones are:-
1. The Home or Institution shall be a home for Ladies in reduced circumstances.
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2. A person to be an inmate must be
(c) 50 years old or upwards.
(d) The unmarried daughter or sister or the widow of a man who has been engaged in some professional or mercantile pursuit.
(e) Possessed or in the actual enjoyment of a fixed yearly income of such amount as the Board of Management shall from time to time determine and unless and until the Board of Management determine to the contrary a fixed yearly income of not less than £25 or more than £55. (No determination has yet been made to the contrary.)
3. In the selection of inmates preference shall be given to ladies residing in Liverpool or being unmarried daughters or sisters or widows of men who have been engaged in a professional or mercantile pursuit in Liverpool.
8. Each inmate shall be entitled at the discretion of the Board of Management to the use of the common room or rooms with the other inmates and to the exclusive use of such one room (a bed and sitting room combined) unfurnished or of two such rooms (a bed room and sitting room) unfurnished as shall from time to time be assigned to her and to be supplied with coals gas and attendance free of cost while occupying such room or rooms.
10. Each inmate shall provide her own furniture food clothing and washing and medical attendance.
The endowment fund consisting of India Stock and debentures and preference stocks of Canadian and English Railways brings in £422 a year without deducting Income Tax.
There are 17 inmates and a staff consisting of a Lady Superintendent 4 female servants and a gardener two days a week.
The said Eliza Jane Clark furnished the hall and staircases common rooms the Lady Superintendent's and servants' rooms and the kitchens and provided linen glass china and cooking and household utensils and the trustees maintain the same.
The Trustees apply the income of the endowment fund in paying the Lady Superintendent's salary and board servants' wages and board the gardener's wages rates repairs; upkeep of fabric and of the articles in the last paragraph mentioned and in providing gas and coals for the inmates and staff.
There are no subscriptions to the Home from the public.
Each inmate provides the furniture for the room or rooms assigned to her and food clothing washing and medical attendance out of the income mentioned in Rule 2 (e) but the food is cooked and served by the staff.
The Appellant contended that as the object of the Home was a charitable one and as it was wholly supported by the endowment fund it was a hospital or house provided for the reception or relief of poor persons in the fullest and most proper sense of the words used in the Inhabited House Duty Act and within the meaning of the word "Hospital" as given in all Standard dictionaries and therefore came within the allowance mentioned in Schedule B. Case IV. of the Act 48 Geo III Cap. 55.
Appellant also contended that the Home was an Institution which was practically of the character of a hospital and was of an eleemosynary character and therefore came within the exemption and he quoted "Cawsev. Nottingham Lunatic Hospital" 1891 1 Q.B. p. 585 where Pollock B. in giving judgment after holding as regards the exemption from...
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