MARSHALL’S EXECUTORS, HOOD’S EXECUTORS AND ROGERS v JOLY (H.M. INSPECTOR OF TAXES)(1) (1933-1937) 20 TC 256
NO. 996–HIGH COURT OF JUSTICE (KING’S BENCH DIVISION)
1ST AND 2ND APRIL, 1936
Income Tax, Schedule D – Dealing in land – Partnership – Sales of land after death of partner – Whether trading or realisation of assets – Income Tax Act, 1918 (8 & 9 Geo. V, c. 40), Schedule D, Cases I and II, Rule 10.
A firm consisting of three partners carried on the trade of dealing in land. The land was developed, and houses were erected thereon, by a limited company in which the partners held shares. On the sale of a house a part of the purchase money was received by the firm in respect of the value of the land.