Higgs v. Olivier (1952), 33 TC 136 (C.A.)

Before going on to find that a lump sum received by an actor in consideration for his covenant not to exercise his vocation for a period of 18 months was a tax-free receipt, Sir Evershed M.R. stated (at p. 145) that "many sums of money received in the course of carrying on a trade, but not as a result of the trade as it was contemplated that it would be carried on in the normal course, may nevertheless be taxable".

After the filming of Henry V was completed, the film company experienced initial difficulties in promoting the film and determined that it would have even greater difficulties if the taxpayer were to act in other films. Accordingly, the film company paid a lump sum of £15,000 to the taxpayer in consideration for his agreement to give up all film work for an 18-month period. Before finding that this sum was not taxable as "profit or gains arising or accruing" from the taxpayer's profession or vocation as an actor, Sir Evershed M.R. stated (at p. 145) that "according to the ordinary sense profits or gains in order to be taxable must arise or accrue from a profession in the sense that they arise from the exercise of the profession".

After the filming of Henry V was completed, the film company experienced initial difficulties in promoting the film and determined that it would have even greater difficulties if the taxpayer were to act in other films. Accordingly, the film company paid a lump sum of £15,000 to the taxpayer in consideration for his agreement to give up all film work for an 18-month period. Before finding that this sum was not taxable as "profit or gains arising or accruing" from the taxpayer's profession or vocation as an actor, Sir Evershed M.R. stated (at p. 145) that "according to the ordinary sense profits or gains in order to be taxable must arise or accrue from a profession in the sense that they arise from the exercise of the profession".