FTTTx CORPORATION TAX – Whether arrears of rent as between associated companies should be allowed on a bad debt, or disallowed for S74(1) ICTA 1988 – question of intention – Appeal Dismissed Citations: [2013] UKFTT 778 (TC) Links: Bailii Statutes: Income and Corporation Taxes Act 1988 74(1) Corporation Tax Updated: 17 November 2022; Ref: scu.472782

The taxpayer sought to set off against its liability to Corporation Tax the depreceiation of its stock. Held: The Inspector’s appeal succeeded. Even though the depreciation was conventional, the prohibition in the 1988 Act was general and overrode it, and was not displaced by the recognition given in the 1998 Act to standard accountancy practices. … Continue reading HM Inspector of Taxes v Mars UK Ltd: ChD 12 Apr 2005

The Revenue appealed findings as to the calculation of profits for corporation tax. The companies had sought to deduct sums from profits for depreciation of unsold stock in accordance with current accounting standards. Held: ‘the profit and loss account is concerned with revenue and expenses. A fall in the value of stock to below cost, … Continue reading Revenue and Customs v William Grant and Sons Distillers Ltd: HL 28 Mar 2007