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Legal Terms – Duality
A principle of UK income tax and corporation tax wherein expenditures are non-deductible in calculating taxable earnings if such expenditures serve a dual purpose. A deduction for determining trading profits is disallowed for any expense not incurred entirely and exclusively for trade purposes. In Mallalieu v Drummond [1983] UKHL TC 57, Mallalieu, a barrister, attempted to deduct the expenses incurred for purchasing attire mandated by court etiquette. The House of Lords determined that the garments served the purposes of offering warmth and modesty to Miss Mallalieu, in addition to complying with court regulations. The dual purpose of the expenditure precluded a deduction for the acquisition of court attire. The duality concept denies relief through payment apportionment but allows relief when a totally business expense can be discerned from the dissection of a payment (Gazelle v Servini [1995] STC 324).
A principle of UK income tax and corporation tax wherein expenditures are non-deductible in calculating taxable earnings if such expenditures serve a dual purpose. A deduction for determining trading profits is disallowed for any expense not incurred entirely and exclusively for trade purposes. In Mallalieu v Drummond [1983] UKHL TC 57, Mallalieu, a barrister, attempted to deduct the expenses incurred for purchasing attire mandated by court etiquette. The House of Lords determined that the garments served the purposes of offering warmth and modesty to Miss Mallalieu, in addition to complying with court regulations. The dual purpose of the expenditure precluded a deduction for the acquisition of court attire. The duality concept denies relief through payment apportionment but allows relief when a totally business expense can be discerned from the dissection of a payment (Gazelle v Servini [1995] STC 324).
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