BRITISH TRANSPORT COMMISSION v GOURLEY [1956] AC 185 The following extracts are from the speech of Earl Jowitt, whose speech reflects the decision of the majority. It begins at p 197:

My Lords, the respondent, who is an eminent civil engineer, suffered severe injuries whilst travelling in a railway train, owing to the negligence of the appellants’ servants, and brought his action to recover damages. The trial judge awarded him £9,000 for pain and suffering and loss of amenities, and £1,000 in respect of out of pocket expenses. No question arose in this appeal as to this part of the award. The trial judge further awarded the respondent the sum of £37,720 in respect of loss of earnings actual and prospective, and in arriving at this sum paid no regard to the fact that had the respondent been able by his activities in his profession as a civil engineer to achieve the earnings represented by the sum of £37,720 he would have had to pay a large amount in respect of income tax and surtax on the amount of such earnings. The trial judge, at the request of the appellants, made an alternative assessment of £6,695, which represented the sum he would have awarded if he ought to have taken into account in assessing damages the tax which the respondent would have had to pay if he had in fact earned by his professional activities the sums lost. It was agreed by counsel on both sides – and, I think rightly agreed – that the respondent would incur no tax liability in respect of the award of £37,720 or alternatively of £6,695.