| 释义 |
rule in Re Pettit
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, but the recipient is taxed on £100 grossed up by the basic rate of income tax (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). |