Case Law

A lump sum received in return for the right to receive future rents was capital in nature in the UK High Court case IRC v John Lewis Properties plc 2001 STC 1118. This followed the decision in Paget v IRC 1938 21 TC 677.

This appeal considered if a taxpayer was renting property as a landlord under Schedule D, Case V or carrying on a trade under Schedule D, Case I. 09TACD2020

It was determined that the Appellant was not entitled to use trading losses against tax due on rental income from a number of properties over which the Appellant acted as mortgagee in possession. 22TACD2020