An investment company made an abortive attempt to take over another. It sought to set off against its Corporation Tax, the costs of the professional advice incurred.
Held: The expenses were deductible.
Judges:
Lord Justice Chadwick Vice-Chancellor, The Vice-Chancellor Lord Justice Carnwath
Citations:
[2004] EWCA Civ 541, Times 27-May-2004, Gazette 03-Jun-2004, [2004] BTC 190, [2004] STC 860, [2004] STI 1163, [2004] 1 WLR 2392
Links:
Statutes:
Income and Corporation Taxes Act 1988 75 130
Jurisdiction:
England and Wales
Citing:
Cited – Hoechst Finance Limited v Gumbrell CA 1983
The issue was whether the appellant company, a member of an international group of trading companies, could recover as expenses of management a commission of 0.25% per annum it had to pay to its parent as the price of obtaining a guarantee for the . .
Cited – Sun Life Assurance Society v Davidson HL 4-Jul-1957
The court considered the question of what was meant by the phrase ‘expenses of management’
Held: The phrase (s75) could be seen ‘as apt to cover the expenses which would normally be deductible in respect of its life assurance business if an . .
Cited – Norman v Golder (Inspector of Taxes) 1944
The court considered the nature of allowable expenses for an investment company: ‘the notion behind this Section may be thought to be that the expenditure is something which if you were looking at the profits and gains under Schedule D would be . .
Cited – Sun Life Assurance Society v Davidson CA 1956
The phrase ‘general management’ extended further than ‘management’ and included what was done at the lower levels of a company’s executive structure.
Romer LJ said: ‘The ratio decidendi of Golder’s Case (Capital and National Trust Ltd. v. . .
Cited – 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.
Cited – Inland Revenue Commissioners v British Salmson Aero Engines Ltd CA 1938
The court considered the applicability of certain provisions to royalty payments. The court considered the notorious difficulty of drawing a clear line between capital and income receipts: ‘There have been many cases which fall on the border-line. . .
Cited – London County Freehold and Leasehold Properties Ltd v Sweet 1942
Expenditure by a property company on the issue of new debenture stock was not ‘expenses of management’ because raising capital was not part of the business of acquiring and managing property. . .
Cited – Cunliffe v Goodman CA 1950
Action for damages for breach of a repairing covenant on the expiry of a lease. The court looked at the intention required of a landlord to show an intended purpose to oppose renewal of a lease. Asquith LJ said: ‘An ‘intention’ to my mind connotes a . .
Appeal from – Camas Plc v HM Inspector of Taxes ChD 7-Jul-2003
An investment company sought to set against its liability to corporation tax, the various costs of taking over another company. They argued that as an investment company these were not costs of the purchase and could be set against tax.
Held: . .
Lists of cited by and citing cases may be incomplete.
Corporation Tax
Updated: 24 August 2022; Ref: scu.196622