Commentary

B5.227 Treatment of builders' deposits with building societies

Business tax
Business tax | Commentary

B5.227 Treatment of builders' deposits with building societies

Business tax | Commentary

B5.227 Treatment of builders' deposits with building societies

The question has arisen whether, when a builder has deposited a sum of money with a building society as security, the builder is required to bring in the whole of the purchase price of a house as a receipt of his trade, or whether some lesser sum should be brought in, having regard to the builder's potential liability in respect of his guarantee and deposit with the building society. In accordance with Harrison v John Cronk & Sons Ltd1 the proper method of dealing with this problem is that the sums deposited

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