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:

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.