BIM80105 - Case VI: General: Scope of Case VI

While an exhaustive enumeration of annual profits chargeable under Case VI is not practicable, the types indicated below may be regarded as falling definitely within that Case.

a) Profits, of a casual or occasional nature, in respect of services rendered or work performed (see Ryall v Hoare [1923] 8TC521; Lyons v Cowcher [1926] 10TC438; Brocklesby v Merricks [1934] 18TC576; and, by way of contrast, Bloom v Kinder [1958] 38TC77; Scott v Ricketts [1967] 44TC303, except where they arise by virtue of an office or employment (see Mudd v Collins [1925] 9TC297) or where the activities out of which they arise form part of a trade, vocation etc (see Wing v O'Connell [1926] L(RI)19). Case VI liability will not arise unless consideration is received for some service or facility provided under an enforceable contract (see Lord Denning in Scott v Ricketts, 44TC at page 321.

b) Profits, whether or not of a casual or occasional nature, representing consideration for the hire of movable objects (for example, furniture), except where such hiring amounts to, or forms part of, a trade. (Letting of movables on hire, where involving constant supervision or the rendering of services, may constitute a trade.)

c) Profits derived from tolls, dues etc which do not arise from the ownership or occupation of lands etc and therefore cannot fall under Case I as being within ICTA88/S55 (2), (see BIM60201).

PROFITS EXCLUDED FROM CASE VI

Casual profits made from the isolated buying and selling of a single article are capital accretions and fall outside of Case VI (see Ryall v Hoare 8TC521). The sale of an article which is not a trading transaction is a capital accretion and so outside the category of annual profits or gains (see Leeming v Jones [1930] 15TC333).

Whether the buying and selling of an article is casual or in the nature of trade is addressed in BIM20200 onwards.