The taxpayer sought to include in the amounts to be set off by surrender against the group’s liability for corporation tax, chargeable gains in respect of allowable losses of a preceding accounting period. They appealed a decision against them at first instance.
Held: The 1988 Act clearly did not allow amounts to be set off which arose other than in the same accounting period. That restriction was not itself restricted only to trading and capital allowances, but included also sums of the type sought to be brought in by the taxpayer. The provisions have since been changed.
Judges:
Lord Justice Pill, Lord Justice Chadwick and Lord Justice Clarke
Citations:
Times 03-Jul-2002, Gazette 08-Aug-2002, [2002] EWCA Civ 883, [2002] STC 997, 75 Tax Cas 632
Links:
Statutes:
Income and Corporation Taxes Act 1988 433, Taxation of Capital Gains Act 1992 8(1)
Jurisdiction:
England and Wales
Citing:
Appeal from – Taylor (Inspector of Taxes) v MEPC Holdings Ltd ChD 12-Jun-2001
The amount of loss available to a company for surrender was restricted to trading losses or capital allowances, and was not to include allowable losses. The sums to be surrendered were those which might appear in a calculation of profits for the . .
Cited by:
Appealed to – Taylor (Inspector of Taxes) v MEPC Holdings Ltd ChD 12-Jun-2001
The amount of loss available to a company for surrender was restricted to trading losses or capital allowances, and was not to include allowable losses. The sums to be surrendered were those which might appear in a calculation of profits for the . .
Appeal from – Taylor (Her Majesty’s Inspector of Taxes) v MEPC Holdings Limited HL 18-Dec-2003
The taxpayer company made a smaller profit than its charges, and sought to reallocate the charges against income for other companies within the group. It could do so, but the difference arose over the period for which surrender would be alowed.
Lists of cited by and citing cases may be incomplete.
Corporation Tax
Updated: 27 August 2022; Ref: scu.174168