The taxpayer company had acquired an asset from a company within the same group. It had been treated as trading stock. The inspector sought to deny transfer of the resulting trading loss between the companies.
Held: The claim and appeal was to be allowed. The properties if sold outside the group would have attracted loss relief, and the purpose of the transfer was in these circumstances not relevant. The Act looked to whether there was a trading purpose for the transfer. That issue was satisfied.
Judges:
Lord Justice May The Hon Mr Justice Parker Lord Phillips Of Worth Matravers, Mr
Citations:
[2004] EWCA Civ 242, Times 12-Apr-2004
Links:
Statutes:
Taxation of Chargeable Gains Act 1992 173(1)
Jurisdiction:
England and Wales
Citing:
Appealed to – New Angel Court Ltd v Adam (Inspector of Taxes) ChD 25-Jul-2003
The taxpayer company employed a subsidiary company through which it conducted its trade in land. It then sought to represent the profits from that subsidiary within its own accounts as trading profits for corporation tax purposes. The commissioner . .
Lists of cited by and citing cases may be incomplete.
Capital Gains Tax
Updated: 10 June 2022; Ref: scu.194583