18-250 Recipient’s potential or actual use or status of the recipient
In deciding whether an output tax liability has arisen, it is generally irrelevant to consider either the use to be made by the recipient or any potential use which may be made.
In British Railways Board v C & E Commrs (1977) 1 BVC 116, the Court of Appeal considered the liability of student rail cards. These were cards which entitled students to discounted rail fares: the test case involved a Miss Owen, a student, who had paid £1.50 for her card. Browne LJ, stated at p. 123: