The Act restricted the extent to which payment made for the hire of vehicles exceeding certain values could be deducted from profits when calculating tax. Autolease hired cars and then relet them to the public. On the sale of the company the question arose as to whether that restriction might apply only to those cars … Continue reading Lloyds UDT Finance Limited v Chartered Finance Trust Holdings Plc and others: ChD 22 Nov 2001
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No re-opening after closure notices The taxpayer had purchased software licences (SLA), and set out to claim the full cost against its tax liabiilities under the 2001 Act in the first year. The taxpayer said that after the Revenue had issued closure notices, it was not able to re-open the assessments for the year in … Continue reading Revenue and Customs v Tower MCashback Llp 1 and Another: SC 11 May 2011
Judges: Norris J Citations: [2009] EWHC 3400 (Ch) Links: Bailii Statutes: Capital Allowances Act 2001 45 Jurisdiction: England and Wales Contract, Torts – Other Updated: 14 August 2022; Ref: scu.401894
The taxpayer had sought to set off the entire cost of software licences against tax in the year of purchase, and challenged the re-opening of tax assessments after their closure by the Revenue. The Revenue appealed. Held: The Revenue could re-open the assessments, but the taxpayer was able to set off the expense as a … Continue reading Revenue and Customs v Tower MCashback Llp 1 and Another: CA 2 Feb 2010
The court considered the availablilty of a first year allowance for the full first year expenditure on software licence agreements. The revenue sought to bring new points on appeal. Held: The LLPs’ appeals on the procedural issue as to the re-opening of the assessments was allowed. Henderson J set out also why he would have … Continue reading Tower Mcashback Llp and Another v HM Revenue and Customs: ChD 13 Oct 2008
SCIT Capital expenditure on software – whether HMRC can raise additional contentions in an appeal beyond those indicated in the Closure Notice – whether expenditure was incurred pursuant to an unconditional contract – whether the expenditure paid 10 months after the date of the contract was still paid under a contract that required payment within … Continue reading Tower MCashback Llp1 and Llp2 v Revenue and Customs: SCIT 19 Jul 2007
Capital allowances – Plant and machinery – security company -acquisition and installation of specialist security equipment- construction of control room – room contained within existing building – detailed specific requirements – reinforcing of walls and ceiling- interlock- work to entrance door and internal flooring-whether construction works were alterations incidental to installation Capital Allowances Act 2001 … Continue reading B and E Security Systems Ltd v Revenue and Customs: FTTTx 26 Mar 2010
The Court was asked whether an employee’s remuneration is taxable as his or her emoluments or earnings when it is paid to a third party in circumstances in which the employee had no prior entitlement to receive it himself or herself. Held: The company’s appeal failed. The purposive approach to the interpretation of the general … Continue reading RFC 2012 Plc (Formerly The Rangers Football Club Plc) v Advocate General for Scotland: SC 5 Jul 2017
The applicant had obtained what it thought to be clearance from the Revenue for a complex scheme, whose effectiveness depended on whether investors would qualify for capital allowances. The Inspector initially gave a favourable assurance, but that was subsequently withdrawn. Held: The taxpayer’s application failed. A tax clearance certificate was properly withdrawn for a failure … Continue reading Regina v Inland Revenue Commissioners Ex Parte Matrix Securities Ltd: HL 14 Mar 1994
Corporation tax – capital allowances – finance lease of ship by Appellant – whether ship used for a qualifying purpose within terms of section 123(1) Capital Allowances Act 2001 – UK company taking bareboat charter of ship and hiring ship on time charter terms – whether ship let on charter in course of trade including … Continue reading Lloyds TSB Equipment Leasing (No 1) Ltd v Revenue and Customs: FTTTx 12 Jan 2012
Charitable Company- Directors’ Status and Duties A married couple set up a charitable foundation to assist children in developing countries. When the marriage failed an attempt was made to establish a second foundation with funds from the first, as part of W leaving the Trust. Court approval was obtained, but the court ordered the remaining … Continue reading Lehtimaki and Others v Cooper: SC 29 Jul 2020
The liquidators of Bilta had brought proceedings against former directors and the appellant alleging that they were party to an unlawful means conspiracy which had damaged the company by engaging in a carousel fraud with carbon credits. On the pleaded facts, Mr Chopra and Mr Nazir were the directing organ of Bilta under its constitution. … Continue reading Jetivia Sa and Another v Bilta (UK) Ltd and Others: SC 22 Apr 2015
Duty of Fairness to taxpayer – Written Assurance The applicant was assured by the Inland Revenue that it would not raise further inquiries on certain tax affairs if he agreed to forgo interest relief which he had claimed and to pay a certain sum in capital gains tax. Held: Where the lawfulness of the section … Continue reading Regina v Inland Revenue Commission ex parte Preston; In re Preston: HL 1984
FTTTx Income Tax/Corporation Tax : Capital Allowance – CORPORATION TAX – writing-down allowances – ships – Capital Allowances Act 2001 s 123(4) – whether obtaining of allowance ‘main object, or one of the main objects’ of the relevant transactions – yes – appeal dismissed [2015] UKFTT 401 (TC) Bailii Capital Allowances Act 2001 123(4) England … Continue reading Lloyds Bank Leasing (No1) Ltd v Revenue and Customs: FTTTx 14 Aug 2015
FTTTx CAPITAL ALLOWANCES – Business Premises Renovation Allowance – whether a former Church was a Qualifying Building as last been used for the purposes of a trade, profession or vocation – yes – whether a Vestry used as an office [whether or not for the purposes of a trade, profession or vocation] – yes. Capital … Continue reading Senex Investments Ltd v Revenue and Customs: FTTTx 4 Mar 2015
Conditions for new evidence on appeal At the trial, the wife of the appellant’s opponent said she had forgotten certain events. After the trial she began divorce proceedings, and informed the appellant that she now remembered. He sought either to appeal admitting fresh evidence, or for a retrial. Held: The Court of Appeal refused to … Continue reading Ladd v Marshall: CA 29 Nov 1954
(Hong Kong Final Court of Appeal) The court was asked as to the accounting treatment of interests incurred in the development for the purpose of generating the profits, and therefore whether the relevant Ordinance prohibited the capitalisation of interest for the purpose of computing the taxpayer’s assessable profits and allowable deductions. Held: Where schemes involve … Continue reading Collector of Stamp Revenue v Arrowtown Assets Ltd: 4 Dec 2003
The purchaser of land created a sub-sale and leaseback with bank so as to fund the purchase in a manner which would comply with Islamic finance principles. The Court was now asked whether purchaser or the bank were liable for stamp duty land tax on . .
