KELSALL PARSONS & CO. v COMMISSIONERS ON INLAND REVENUE(1) (1935-1938) 21 TC 608
NO. 1067–COURT OF SESSION (FIRST DIVISION)–
5TH AND 6TH JANUARY, 1938
Income Tax, Schedule D – Compensation received by manufacturers’ agents for cancellation of agency contract – Whether profits of trade.
The Appellants carried on business as agents on a commission basis for the sale in Scotland of the products of various manufacturers, and entered into agency agreements for that purpose. At the instance of the manufacturer concerned one of the agreements, which was for a period of three years, was terminated at the end of the second year in consideration of payment to the Appellants of the sum of £1,500 as compensation.