Case Law

This page shows a summary of relevant case law. To view the section of legislation to which the case law applies, click the link below:

Case Law

Rolls Royce Motors Ltd v Bamford 1976 STC 162 considered the status of the trading activities that remained following the transfer of part of a trade. There were three trades and then one (80% of company’s business) was transferred to a State owned company following the appointment of a receiver. The question arose if the two remaining trades were a continuation of the company’s trade or a new trade? It was held the fact that 80% of company’s business had been transferred there was a discontinuance of the company’s trade at the time of the transfer.

Where a transferee company merges certain trading activities into its existing trade, that may result in the commencement of a new single trade where the merged and the preexisting activities of the company are of a similar scale. George Humphries & Co v Cook 19 TC 191

A company selling shoes retail was denied relief for losses of shoe manufacturing trades carried on by two of its subsidiaries after acquiring the assets of those companies and commencing to manufacture the shoes itself. It was held that the company had not succeeded to the trades of the subsidiaries as those trades consisted of the manufacture of shoes and their sale wholesale whereas after the transfer the trade was the manufacture and their sale retail. Laylock v Freeman Hardy & Wlillis Ltd 22 TC 288

Where a company took over the trade of its supplier, even though the profits of that trade were no longer being separately realised, the claim for losses was allowed. Falmer Jeans Ltd v Rodin 1990 STC 270