BIM14005 - Schedule D: Mutual exclusivity of the Schedules

The Schedules in the Taxes Acts are mutually exclusive. If income falls within the scope of another Schedule then it cannot be charged under Schedule D. The Crown has no right to choose under which Schedule it will charge tax. This contrasts with the Crown's right to choose between the Cases of Schedule D. See BIM14035.

The principle of the mutual exclusivity of the Schedules was discussed and approved in Salisbury House Estate Ltd v Fry [1930] 15TC266 and Mitchell and Edon v Ross [1961] 40TC11. In the latter case Viscount Simonds noted, at page 57:

" I regard it as fundamental and well settled law that the Schedules to the Income Tax Acts are mutually exclusive, and that the specific Schedules A, B, C, D and E and the Rules which respectively regulate them afford a complete code for each class of income, dealing with allowances, deductions and exemptions relating to them respectively."