BIM60160 - Land: Trading transactions: Useful
land cases
The following is a list of useful land cases and the points of
interest they illustrate. The list is not exhaustive. There are
numerous decided cases and it is rarely profitable to spend time
trying to find one which matches the facts of your case. It is much
better to concentrate on the main principles, which can be
extracted from the cases listed here.
Marson v Morton and Others [1986] 59TC381:
- summary of badges of trading in land
context.
- the role of case law in arguing and
presenting cases.
- sale arranged prior to acquisition: a
major trade pointer.
- trading is a question of fact.
Lionel Simmons Properties Ltd (in Liquidation) and Others v
CIR[1980] 53TC461:
- the importance of establishing intention
on acquisition.
- assets cannot be acquired with
indeterminate status.
- assets can change from investment to
trading stock and vice versa.
- judicial endorsement of concept of
supervening trading.
Iswera v CIR 1WLR 1985 (copies available from Business Tax
(Technical)):
- land bought partly for sale, partly for
retention the former to finance the latter: transaction held to be
trading.
- equivocal/non equivocal transactions.
Kirkham v Williams [1991] 64TC253:
- discussion of equivocal transactions.
- discussion of dual motive
transactions.
Harvey v Caulcott [1952] 33TC159:
- the special position of builders in land
transactions.
The Hudson's Bay Company v Stevens [1909] 5TC421:
- the enhancement of land limited to
development of the infrastructure does not entail trading.
CIR v Reinhold [1953] 34TC389:
- profit motive not conclusive of
trading.
Taylor v Good [1974] 49TC277 Page v Lowther [1983] 57TC199:
