All England Law Reports/1993/Volume 1 /Pepper (Inspector of Taxes) v Hart and related appeals –  1 All ER 42
 1 All ER 42
Pepper (Inspector of Taxes) v Hart and related appeals
LORD MACKAY OF CLASHFERN LC, LORD KEITH OF KINKEL, LORD BRIDGE OF HARWICH, LORD GRIFFITHS, LORD ACKNER, LORD OLIVER OF AYLMERTON AND LORD BROWNE-WILKINSON
HOUSE OF LORDS
4, 8, 9, 10, 11, 17, 18 JUNE, 26 NOVEMBER 1992
26 November 1992. The following opinions were delivered.
LORD MACKAY OF CLASHFERN LC.
My Lords, I have had the advantage of reading in draft the speech of my noble and learned friend Lord Browne-Wilkinson. I respectfully adopt his narrative of the proceedings in this appeal and his account of the statutory provisions by reference to which it falls to be decided.
A fact which I regard as crucial to the decision of these appeals is stated by the Special Commissioner as follows ( STC 6 at 11): ‘On the facts, the taxpayers’ sons occupied only surplus places at the college and their right to do so was entireIy discretionary.’ I regard it as important in considering the benefit which is to be subject to taxation that the benefit should be identified. The benefit which the taxpayers in this case received was the placing of their children in surplus places at the college, if as a matter of discretion the college agreed to do so.