C&E Commissioners v. Music and Video Exchange Ltd., [1992] BTC 5028 (Q.B.)

A dealer was found to acquire musical equipment from members of the public for resale as their agent in accordance with the description of the arrangement as an agency one in the relevant agreement notwithstanding that the dealer had the power to effect all necessary repairs to the equipment before sale.

Before finding that an arrangement which had been described in the relevant documents as an agency relationship should be respected as such, McCullough J. stated (p. 5030):

"The citizen is entitled to order his affairs in such a way that the tax properly attaching to his dispositions is less than it might otherwise be, however unappreciative the Commissioners of Inland Revenue or the Commissioners of Customs and Excise may be of the result."