Scottish Court of Session Decisions

Rule III. of Schedule B of 48 Geo. III., c. 55 (providing for duties on inhabited houses) enacts—“All shops and warehouses which are attached to the dwelling-house, or have any communication therewith, shall in charging the said duties be valued together with the dwelling-house and the household or other offices aforesaid thereunto belonging (except such warehouses and buildings upon or near adjoining to wharfs which are occupied by persons who carry on the business of wharfingers, and who have dwelling-houses on the said wharf for the residence of themselves or servants employed upon the said wharfs).”

The Customs and Inland Revenue Act 1878 enacts—sec. 13, sub-sec. 1—“Where any house, being one property, shall be divided into and let in different tenements, and any of such tenements are occupied solely for the purposes of any trade or business, or of any profession or calling by which the occupier seeks a livelihood or profit, … the commissioners acting in the execution of the Acts relating to the inhabited-house duties shall, upon proof of the facts to their satisfaction, grant relief from the amount of duty charged on the assessment.” … Sub-section 2—“Every house or tenement which is occupied solely for the purposes of any trade or business, or of any profession or calling by which the occupier seeks a livelihood or profit shall be exempted from the duties by the said commissioners.” …

The Customs and Inland Revenue Act 1890 (53 Vict. cap. 8), sec. 26 (2), as amended by the Customs and Inland Revenue Act 1891 (54 and 55 Vict. cap. 25), sec. 4 (1), enacts:—“The assessment to inhabited-house duty of any house originally built, or adapted by additions or alterations and used for the sole purpose of providing separate dwellings where the annual value of each dwelling shall not amount to £20 shall be discharged by the Commissioners, provided that a certificate of the Medical Officer of Health for the district in which the house is situated, or other medical practitioner appointed as hereinafter provided, shall be produced to them to the effect that the house is so constructed as to afford suitable accommodation for each of the families or persons inhabiting it, and that due provision is made for their sanitary requirements.”

At a meeting of the Commissioners for executing the Acts relating to the inhabited-house duties for the county of Edinburgh, the Lord Provost, Magistrates, and Town Council of Edinburgh appealed against the assessment upon them for the year 1901–2 of £53, 8s. 9d., being inhabited-house duty at the rate of 9d. per £ on £1425, the annual value for that year of houses and fire station at 76 Lauriston Place, Edinburgh.

The following facts were admitted or proved:—1. The premises in respect of which the assessment in question is made consist of the chief fire station of the city of Edinburgh. They are erected upon a piece of ground which is bounded on the north-east by the Cattle Market, on the north-west and south-east by the Cattle Market and approaches to it, and on the south-west and south by Lady Lawson Street and Lauriston Place respectively, and are correctly shown on the plans. 2. The premises were erected with a view to the purposes for which they are at present occupied. They form one large building, which has a frontage to Lauriston Place of 57 feet 10 inches, and to Lady Lawson Street of about 200 feet. Between the portion of the building facing Lady Lawson Street and that street there is a narrow strip of ground separated from the street by a wall surmounted by railings. In this wall are three gateways. A continuation of this wall encloses the yard referred to in statement 3. In this case the portion of the building facing Lauriston Place is hereinafter referred to as Block A, the portion in Lady Lawson Street next to block A is hereinafter referred to as block B, and the portion in Lady Lawson Street furthest from Block A is hereinafter referred to as block C. 3. Behind the building is a yard in which are out-houses used in connection with the Fire Station. They consist of a fire-escape shed, two coal cellars, a van-house, harness-room, stable, loose-box, and urinal. Between the urinal and the wall of block C there is a gate which is kept unlocked. There are other coal cellars which are not in use. The yard is enclosed by the wall referred to in statement 2. Access is obtained to it either from the Cattle Market by a gate and door in the south-east wall, or through the building itself as afterwards explained. Access can also be obtained to it by passing through the westmost gate in the wall fronting, and from thence round the northwest end of the building. 4. Block A consists of four storeys. The ground floor, which contains engine-house, washing-place, and stable, is entered from Lauriston Place. Access is obtained from the engine-house to the yard behind through the stable and through the wash-place. There is also a door from the engine-house into the lobby on the ground floor of block B to enable the firemen who live in the upper floors of the building to get access to the engine-house. Access is obtained by means of the first stair of block B to the first floor of block A, which is occupied by the firemaster as his dwelling-house. This stair forms the only access to the firemaster's dwelling-house; it is used exclusively as such access, and it provides internal communication between that house and the duty-room, and through it to other parts of the building. There is a steel pole at the head of the staircase to the firemaster's house, down which he can slide when called to duty. The second floor of block A consists of a lobby and two houses opening off it. The lobby is reached by a second stair within block B. Of these houses one is occupied by an officer of the Fire Brigade, and the other is occupied by the keeper of the cattle market, who is in the employment of the Lord Provost, Magistrates, and Council. The value of the house last mentioned is not included in

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the assessment under appeal, but is separately assessed. Each of these houses has a separate outer door. The third floor of block A is reached by a stair from the lobby of the second floor. It contains two houses, each of which has a separate outer door. These houses are occupied by members of the Fire Brigade. 5. In block B there is a small basement used as a boiler-house, and entered by a stair within block B. There is also another basement under the part of block B nearest to block C, which is entered by a stair from the ground floor of block C. It has also an entrance from Lady Lawson Street. There are three entrances on the ground floor of block B from the street. Of these one gives access to the stair to the firemaster's house, another gives direct access to the duty-room, and another gives access to a lobby leading to the firemaster's room and office. From the duty-room access is obtained to the lobby, from which a stair descends to the boiler-house on the basement, and ascends to the upper flats of block B and to the second floor of block A. The firemaster's room and office are connected internally with the duty-room. The ground floor of block B is occupied exclusively for purposes of the fire brigade, and contains the firemaster's room and office, a recreation-room, gymnasium, a store, a lavatory, and a duty-room. The duty-room is for the accommodation of the men who are on duty for the time being. In case of a fire in any part of the city they summon the required firemen from their houses on the upper floors of the building by means of alarm-bells. Of these there is one in each fireman's house connected with the duty-room. If the alarm is at night those in the duty-room can switch on the electric light in each fireman's house. In the well of the staircase, which ascends to the upper flats of block B and to the second flat of block A, there are steel poles running up to the topmost flat, down which the firemen can slide when called to duty. From the lobby from which this stair springs there is direct communication with the yard behind the building. The first floor of block B consists, with the exception of the kitchen of the firemaster's house, entirely of houses occupied by the firemen. Of these houses one is entered from a landing on the stair, and the others from a balcony running along the back of blocks B and C, and communicating with the said landing. The second floor of block B also consists of houses occupied by the firemen. Of these houses one is entered from a landing on the stair and the others from a balcony running along the back of blocks B and C, and communicating with the said landing. In the part of block B nearest to block C there is a third floor used as a laundry, with drying-horses and a cistern-room. Access to it is obtained from the stair in block C. 6. The ground floor of block C is occupied exclusively by workshops in connection with the Fire Brigade, by a stair leading down to the basement aforesaid used as a store in block B, and by a stair leading to the upper floors of block C and to the third floor of block B. There is no door or opening from the stair in block C into the workshops on the ground floor of the block. The ordinary access to them is from the yard behind the building. It is also possible to enter them from Lady Lawson Street through the cellar in the basement of block B. The upper floors of block C consist wholly of houses occupied by firemen. On each of these flats one house is entered from the landing of a stair. The others are entered from the balconies referred to in the preceding paragraph. 7. Each of the firemen's houses has an outer door. Any fireman desiring to leave the premises must obtain special leave and return at an hour specified. The occupation by the firemen of their houses is in virtue of their employment by the Lord Provost, Magistrates, and Council.”

The Commissioners restricted the assessment to £1, 10s., being inhabited-house duty at the rate of 6d. per £ on £60, the annual value of that part of the premises occupied as a dwelling-house by the fire-master.

The Surveyor of Taxes appealed.

Argued for the appellant—This fire station was an inhabited house, as the building was a unum quid, in one occupation, and with complete internal communication— Scottish Widows Fund v. Inland Revenue, January 22, 1880, 7 R. 491, 17 S.L.R. 314. It did not fall under the exemption in section 13 of the Customs and Inland Revenue Act 1878. In order to let in the exemption in the first sub-section, quoted supra, the building in question must be in separate parts without intercommunication, and must be let— Russell v. Coutts, December 4, 1881, 9 R. 261, 19 S.L.R. 197; Grant v. Langston, May 28, 1900, 2 F. (H.L.) 49, 37 S.L.R. 691; Yorkshire Fire and Life Assurance Company v. Clayton, 1881, 8 Q.B.D. 421; Union Bank of Scotland v. Inland Revenue, March 20, 1901, 3 F. 771, 38 S.L.R. 464; London and Westminster Bank v. Smith, 1902, 87 L.T. 244. Neither of these conditions were fulfilled here. The exemption in the second sub-section (quoted supra) did not apply unless the building was occupied for business by which the occupier sought his livelihood or profit— London Library v. Carter, 1890, 62 L.T. 466. The Town Council did not carry on any trade or business at the fire station, nor did they thereby seek their livelihood or profit. The words “by which the occupier seeks a livelihood or profit” applied to the words “trade or business” as well as to the words “profession or calling”— Muat v. Shaw-Stewart, January 27, 1890, 17 R. 371, 27 S.L.R. 294. As there was intercommunication between the several parts of the building it was all assessable as one house, and therefore the provisions of the Customs and Inland Revenue Act 1890, whereby houses under £20 rental obtained exemption, were not applicable— Browne v. Fustado [1903], 1 K.B. 273. Besides, the fire station was not built solely for the purpose of being used for separate dwellings under £20 annual value.

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Argued for the respondent—(1) The building here did not fall under the description of an inhabited house. (2) Even if it was an inhabited house, it fell within the exemptions— Smiles v. Crooke, March 6, 1886, 13 R. 730, 23 S.L.R. 489. The Town Council here carried on a trade or business. It was not necessary to show that they did so for their livelihood or profit; these words applied to a “profession or calling,” not to “a trade or business.” The firemen's houses having each an annual value under £20 were exempt under the Acts of 1890 and 1891.