UT (Tax & Chancery) UT-2024-000088 - [2025] UKUT 00374 (TCC)

Before turning to the facts of Abbott, it is helpful briefly to refer to another decision of the House of Lords which features prominently in that case: Tennant v Smith [1892] AC 150. In Tennant the taxpayer was required to reside in part of his employer’s business premises as a condition of employment. The Revenue sought to treat that right (monetarised by reference to the cost of renting alternative accommodation) as a “perquisite,” “profit” or “emolument” of his employment. The House of Lords found for the taxpayer, on the basis that the language in the statute required “something acquired which the acquirer became possessed of and can dispose of to his advantage – in other words money – or that which can be turned to pecuniary account” (Lord Watson at p.160).