The court asked as a question of principle as to whether Parliament ever intended to allow capital expenditure to be deductible as an expense against income.
Held: ‘the expenditure is something which if you were looking at profits and gains under Schedule D would be deductible as a sum of money wholly and exclusively expended for the purpose of making profits and gains.’
Croom-Johnson J
(1949) 31 TC 266
England and Wales
Cited by:
Cited – 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.
Income Tax
Updated: 17 November 2021; Ref: scu.184470