Essex County Council v Ellam (H.M. Inspector of Taxes).  BTC 133
Court of Appeal.
Purchas, Dillon and Croom-Johnson L.JJ.
Judgment delivered 23 February 1989.
Income tax – Annual payments – Covenant – Payments made after deduction of tax – Covenant in favour of county council in discharge of obligation to reimburse council for school fees – Whether payments were ‘pure profit income’ of the council – Whether council entitled to recover tax deducted – Income and Corporation Taxes Act 1970, sec. 52 (now Income and Corporation Taxes Act 1988, sec. 348).