Strong & Co of Romsey Ltd v Woodifield [1906] 5 TC 215

Citation:Strong & Co of Romsey Ltd v Woodifield [1906] 5 TC 215

Link to case on Casemine.

Rule of thumb:When are expenses wholly connected with trade for the purposes of deducting these from revenues/turnover to calculate taxable profits? This is a strict test – any expense which could have dual benefit to both business as well as personal life does not apply.

Judgment:

`…I think that the loss sustained by the Appellants was not really incidental to their trade as innkeepers, and fell upon them in their character not of traders but of householders.’ Lord Chancellor

Warning: This is not professional legal advice. This is not professional legal education advice. Please obtain professional guidance before embarking on any legal course of action. This is just an interpretation of a Judgment by persons of legal insight & varying levels of legal specialism, experience & expertise. Please read the Judgment yourself and form your own interpretation of it with professional assistance.