Batey (HMIT) v Wakefield – the emergence of the ‘entity’ test

The taxpayer built a house for himself and his family in 1959 on 1.1 acres of land which he owned. After a number of burglaries in the area, including one suffered by him, he decided in 1966 to employ a resident caretaker and built for him a chalet bungalow, separated from the main house by only a tennis court and a hedge – apparently about 50 feet in length. (A full-sized tennis court would be 39 feet wide, including sidelines.) It had its own access from a separate road, and was separately rated from the main house. He sold the chalet bungalow in 1974, while retaining the remainder of the property. Exemption was claimed on the gain.

Want to read more?

This content requires a Croner-i Tax and Accounting subscription.

Existing subscriber? Log in

No subscription?

Contact us to discuss your requirements.