Related Content

More Like This

Show all results sharing this subject:

  • Law


Show Summary Details


rule in Re Pettit

Quick Reference

The tax rule that applies when an agreement states that the payer is to pay Q £100 “free of tax”. The payer is then required to make a payment to Q of £100; this is equivalent to £128.20 gross and the recipient's income is therefore taken to include not £100 but £128.20 (Re Pettit, Le Fevre v Pettit [1922] 2 Ch 765). Illogically, the rule does not apply to court orders (Jefferson v Jefferson [1956] 1 All ER 31).

Subjects: Law

Reference entries