COMMISSIONERS OF INLAND REVENUE v. AYRSHIRE EMPLOYERS' MUTUAL INSURANCE ASSOCIATION, LTD.

(1945) 79 Ll.L.Rep. 307

HOUSE OF LORDS.

Before Lord Thankerton, Lord Macmillan, Lord Wright, Lord Simonds and Lord Uthwatt.

Revenue - Income tax - Mutual insurance association - Object of company to indemnify members in respect of workmen's compensation claims-Transactions exclusively with own members-Surplus arising from such transactions-Whether assessable to income tax - Effect of Finance Act, 1933, Sect. 31. (1) In the application to any company or society of any provision or rule relating to profits or gains chargeable under Case 1 of Schedule D (which relates to trades) . . . any reference to profits or gains shall be deemed to include a reference to a profit or surplus arising from transactions of the company or society with its members which would be included in profits or gains for the purposes of that provision or rule if those transactions were transactions with non-members, and the profit or surplus aforesaid shall be determined for the purposes of that provision or rule on the same principles as those on which profits or gains arising from transactions with non-members would be so determined. (7) In this section the expression "company or society" means any incorporated company or society whether incorporated in the United Kingdom or elsewhere . . . .