Ditchfield (H.M. Inspector of Taxes) v Sharp and Ors. 1983 BTC 360
Court of Appeal.
Judgment delivered 23 June 1983.
Income tax – Whether gain of an income nature – Whether excess received on discharge of promissory note a ‘discount’ chargeable under Case III of Sch. D – Whether a discounting transaction – Income and Corporation Taxes Act 1970, sec. 108(1)(b), 109.
This was an appeal by the taxpayers from a decision of Walton J., 82 BTC 39, who determined that a payment received by the taxpayers upon the maturity of a promissory note was taxable as a ‘discount’ under the provisions of sec. 108 of the Income and Corporation Taxes Act 1970.