Simpson v John Reynolds & Co (Insurances) Ltd

CA 1975 49 TC 693 [1975] STC 271 [1975] 1 WLR 617 [1975] 2 ALL ER 88

An insurance broker provided brokerage services to one of its important clients for a number of years.  The client decided to move its business elsewhere and in recognition to the insurance broker made a payment of £5,000 by annual instalments of £1,000.  The £5,000 was not deemed to be as a trading receipt, because it was in recognition for past services after the business relationship ceased.  It was seen as a gift, therefore unsolicited and unexpected.