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Scottish Widows Plc -v- Revenue and Customs

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Scottish Widows Plc -v- Revenue and Customs

Postby dls » Thu Nov 15, 2012 3:41 pm

Scottish Widows Plc -v- Revenue and Customs - SC - 06-Jul-2011 - Lord Hope, Deputy President, Lord Walker, Lady Hale, Lord Neuberger, Lord Clarke (Bailii, [2011] UKSC 32, Bailii Summary, SC Summary, SC, UKSC 2010/0178, [2011] BTC 413, 2011 SLT 749) - Scotland - Income Tax
The taxpayer insurance company had transferred sums from accounts designated as Capital Reserves. The Revenue said that these were properly part of the profit and loss accounts for the respective tax years, and chargeable receipts.
Held: The Revenue's cross appeal succeeded. As a life assurance company, the amounts to be taken into account in computing its profits include its investment income from its long term business fund and any increase in the value of its assets during the accounting period. The amounts to be taken into account under section 83(2) were those listed on the Form 40, the revenue account submitted in respect of a Long Term Buisness Fund. It was necessary to concentrate not on the past history of the legislation, but the meaning of the sections at the relevant time.
The use of the word 'as' in 'as brought into account' showed that the calculation must be on the basis of what had actually been entered into the regulatory account, through the Form 40. The words of the statute were clear enough to dispel arguments as to alternative meanings put by the taxpayer.
Statutes:
Finance Act 1998 s. Sch 18
Insurance Companies (Accounts and Statements) Regulations 1996 (SI 1996/943)
Insurance Companies Act 1982

Cases Cited:
Scottish Widows Plc -v- Revenue & Customs SCIT 24-1-2008 (Bailii, [2008] UKSPC SPC00664, [2008] STI 320, [2008] STC (SCD) 544) - At Special Commissioners
Scottish Widows Plc -v- HM Revenue & Customs SCS 28-5-2010 (Bailii, [2010] ScotCS CSIH_47, [2010] STC 2133, [2010] STI 1711, 2010 SLT 885, [2010] CSIH 47, 2010 GWD 21-419) - Appeal from
Scottish Union and National Insurance Co -v- Inland Revenue 1889 ((1889) 16 R 461)
Revell -v- Edinburgh Life Insurance Co 1906 ((1906) 5 TC 221)
Gresham Life Assurance Society -v- Styles 1892 ([1892] AC 309)
Revenue & Customs -v- William Grant & Sons Distillers Ltd HL 28-3-2007 (Bailii, [2007] UKHL 15, Times 02-Apr-07, [2007] 1 WLR 1448, [2007] 2 All ER 440)
London County Council -v- Attorney General 1901 ([1901] AC 26)
Equitable Life Assurance Society -v- Hyman HL 20-7-2000 (Times 21-Jul-00, Gazette 03-Aug-00, House of Lords, House of Lords, Bailii, [2000] UKHL 39, [2000] 3 All ER 961, [2000] 3 WLR 529, [2002] 1 AC 408)
Commissioners of Inland Revenue -v- McGuckian HL 21-5-1997 (Times 20-Jun-97, Gazette 09-Jul-97, House of Lords, Bailii, [1997] UKHL 22, [1997] 1 WLR 991, [1997] 3 All ER 817)
Pepper (Inspector of Taxes) -v- Hart HL 26-11-1992 (lip, [1992] 3 WLR 1032, [1993] AC 593, [1993] 1 All ER 42, Bailii, [1992] UKHL 3)
Allchin -v- Coulthard CA 1942 ([1942] 2 KB 228)
W T Ramsay Ltd -v- Inland Revenue Commissioners; Eilbeck (Inspector of Taxes) -v- Rawling HL 12-3-1981 ([1981] 1 All ER 865, [1982] AC 300, Bailii, [1981] UKHL 1, [1981] STC 174)
Farrell -v- Alexander HL 24-6-1976 ([1977] AC 59, Bailii, [1976] UKHL 5, [1976] 2 All ER 721)
Vestey -v- Inland Revenue Commissioners HL 1979 ([1980] AC 1148, (1979) 54 Tax Cas 503, [1979] 3 WLR 915)
Inland Revenue Commissioners -v- Joiner HL 1975 ([1975] 1 WLR 1701)
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