Income which was received from the investment of funds set aside for possible claims or otherwise, was to be to be set off against trading losses. Citations: Times 28-Feb-1995 Statutes: Income and Corporation Taxes Act 1988 393-8 Jurisdiction: England and Wales Income Tax Updated: 05 June 2022; Ref: scu.84387
The income from investments set aside to cover future liabilities was not trading income. Citations: Gazette 09-May-1996, Times 29-Mar-1996 Statutes: Income and Corporation Taxes Act 1988 393(8) Citing: Appeal from – Nuclear Electric Plc v Bradley (Inspector of Taxes) CA 13-Nov-1995 Income on funds set aside but not allocated for expenditure not trading income . … Continue reading Nuclear Electric Plc v Bradley (Inspector of Taxes): HL 29 Mar 1996
Arden, Sales, Henderson LJJ [2018] EWCA Civ 1185, [2018] STI 1043, [2018] 1 WLR 3837, [2018] BTC 21, [2018] STC 1245, [2018] WLR(D) 318, [2018] 4 All ER 504 Bailii, WLRD Income and Corporation Taxes Act 1988 393 England and Wales Corporation Tax Updated: 06 December 2021; Ref: scu.617308
The Court considered the interpretation of the sections which applied corporation tax to post-cessation receipts. Companies had received from the Inland Revenue substantial repayments of VAT together with interest. There had been reorganisations of the group, the company which had made the overpayment did not exist, and the payee of the repayment had only later … Continue reading Shop Direct Group v Revenue and Customs: SC 17 Feb 2016
The husband and wife had each owned a share in a company which sold the services of the husband. The Revenue claimed that the payment of dividends to the wife was a settlement. Held: The Revenue failed. The share had been transferred to the wife by the formation agents. The share carried more than the … Continue reading Jones v Garnett (Her Majesty’s Inspector of Taxes): HL 25 Jul 2007
Corporation tax – Losses – Relief Time-limit – Substantive Fairness – Judicial review-Claims for relief against other profits of same period-Claims refused-Whether estimated figures delivered within two-year time-limit constituted claims-Express claims made after expiry of time-limit-Previous late claims admitted without question-Whether Revenue wrongly refused claims-Income and Corporation Taxes Act 1970, s 177(2) and {10), Taxes … Continue reading Unilever Plc, Regina (on The Application of) v Inland Revenue: CA 13 Feb 1996
CORPORATION TAX, CAPITAL GAINS TAX, INCOME TAX – expenditure allowable under s38(1)(b) of TCGA 1992 – penalties imposed under s95 of TMA 1970 – interaction of s393A of ICTA 1988, paragraphs 58 and 59 of Schedule 18 FA 1998 and Schedule 1A of TMA 1970 in relation to carry back of losses for corporation tax … Continue reading Hadee Engineering Co Ltd and Others v Revenue and Customs: UTTC 17 Mar 2022
A company is not allowed to allocate set offs of interest payments against foreign income in such a way as merely served with double taxation relief to carry forward the maximum amount of loss. Citations: Times 20-Jan-1999 Statutes: Income and Corporation Taxes Act 1988 338(1) 393(9) 797(3) Jurisdiction: England and Wales Income Tax Updated: 10 … Continue reading Commercial Union Assurance Co Plc v Shaw (Inspector of Taxes): CA 20 Jan 1999
CORPORATION TAX – Loss relief – Yacht chartering business carried out on a commercial basis – Whether it was also carried out with a view to the realisation of profits of trade in the accounting periods for the years ended 31 March 2009 and 2010 (as required by s 393A (3) and (4) of the … Continue reading Beacon Estates (Chepstow) Ltd v Revenue and Customs: FTTTx 16 Jul 2014
An assessment to income tax had been raised after the employee resold shares in the company issued through the employees’ share scheme at a price which the Revenue said was above the share value. The company appealed against a finding that tax was payable. Held: The appeal failed. The Revenue should calculate the price which … Continue reading Grays Timber Products Ltd v Revenue and Customs: SC 3 Feb 2010
