Penalties for failure to file company tax returns – Schedule 18 Finance Act 1998 – taxpayer relied on agent to file returns – unaware returns had not been filed – whether reasonable excuse – no – appeal dismissed

Citations:

[2019] UKFTT 535 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 31 December 2022; Ref: scu.641335

PC Trinidad and Tobago

Citations:

Appeal No 67 of 1998, [1999] UKPC 45

Links:

Bailii, PC, PC

Jurisdiction:

England and Wales

Corporation Tax

Updated: 20 December 2022; Ref: scu.174625

Corporation Tax – Exchange of shares – Whether the restriction set out in s 137(1) TCGA 1992 applies – No – Appeal allowed

Citations:

[2021] UKFTT 61 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 20 December 2022; Ref: scu.661785

Penalty for late filing of company tax returns – late appeal to HMRC – taxpayer relied on agent to deal with tax affairs – whether to give permission for late appeals to be made – Martland and Katib considered – permission refused

Citations:

[2019] UKFTT 542 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 20 December 2022; Ref: scu.641347

Income on funds set aside but not allocated for expenditure not trading income

Citations:

Ind Summary 13-Nov-1995

Jurisdiction:

England and Wales

Citing:

Appeal from – Nuclear Electric Plc v Bradley (Inspector of Taxes) ChD 10-Apr-1995
Interest on funds set aside for future costs was trading income-liabilities current. . .

Cited by:

Appeal from – Nuclear Electric Plc v Bradley (Inspector of Taxes) HL 29-Mar-1996
The income from investments set aside to cover future liabilities was not trading income. . .
Lists of cited by and citing cases may be incomplete.

Corporation Tax

Updated: 09 December 2022; Ref: scu.84384

Corporation tax -management expenses- rental guarantee payments made by holding company –lump sum release payments – rental guarantee payments and provision for future guarantee payments – ‘expenses of managing the investment business’ – duality of purpose – capital or revenue — held – lump sum release payments deductible management expenses – not capital in nature -guarantee payments and provision for future guarantee payments expenditure on assets not on investment business -non deductible – re-current payments – revenue in character.

Citations:

[2014] UKFTT 257 (TC), [2014] STI 2015, [2014] SFTD 1186

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 09 December 2022; Ref: scu.525265

CORPORATION TAX – settlement agreement in litigation – whether capital or revenue in nature revenue – appeal dismissed

Citations:

[2021] UKFTT 56 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 07 December 2022; Ref: scu.661782

CORPORATION TAX – Accountancy treatment and amortisation of assets sold – Nature of assets – Finance Act 2002 Schedule 29 – Whether assets were intangible assets or financial assets? – Intangible assets – Whether treatment in accounts UK GAAP compliant? – Yes – Appeal allowed

Citations:

[2021] UKFTT 38 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 07 December 2022; Ref: scu.661775

CORPORATION TAX – Appellant’s large-scale cash purchases of scrap gold and bullion in Birmingham’s ‘jewellery quarter’
Were there understated profits chargeable to corporation tax in accounting period ending (‘APE’) 31.1.11? – Yes – What were they? – Tribunal has made findings which will permit re-calculation
Having so found, can ‘the presumption of continuity’ be applied to earlier and/or later years so as to support assessments for those earlier and later years? – Yes, but, on the facts, only to APE 10 – Presumption of continuity displaced for years other than APE 10 and APE 11
Assessment for APE 10 was a discovery assessment – Were the conditions in FA 1998 Schedule 18 satisfied in relation to APE 10? – Yes – Was the discovery stale by the time of the assessment? – On the facts, No
Can the understated profits for APE 10 or APE 11 be treated as a loan or advance by the Appellant – No
ALTERNATIVE DISPUTE RESOLUTION – remarks on its potential utility in this dispute

Citations:

[2019] UKFTT 44 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 06 December 2022; Ref: scu.635678

CORPORATION TAX – late filing of return – tax-geared penalty on unpaid tax – para 18 of Schedule 18 to FA 1998 – penalty for the twin failure in return filing and tax payment – whether reasonable excuse – s 118 of TMA – reliance on accountants – insufficiency of funds – appeal dismissed

Citations:

[2019] UKFTT 709 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 06 December 2022; Ref: scu.646881

CORPORATION TAX – capital allowances – expenditure on fixtures on which capital allowances had been claimed by previous owner – claim limited to amount which vendor had been required to bring into account – whether or not this was determined by allocations in contract between the parties – held not – whether or not this was determined by amount actually brought into account by vendor – held not – appeal allowed in part

Citations:

[2019] UKFTT 59 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 06 December 2022; Ref: scu.635665

CORPORATION TAX – penalties – whether reasonable excuse – no

Citations:

[2020] UKFTT 504 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 05 December 2022; Ref: scu.661813

CORPORATION TAX – Research and Development (R and D) – Tax relief – qualifying expenditure – BIS Guidelines – whether the Appellant qualified for relief – appeal allowed in part

Citations:

[2020] UKFTT 497 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 30 November 2022; Ref: scu.661796

Corporation Tax – group relief – claimant company resident in the United Kingdom – subsidiaries resident in other EU member states – whether making a claim for group relief implies the withdrawal of an earlier claim for group relief in respect of losses of companies resident in the United Kingdom – whether claim made in the alternative to the earlier claim – Income and Corporation Taxes Act 1988, Part X, chapter IV – Finance Act 1998, schedule 18

Citations:

[2020] UKFTT 60 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 27 November 2022; Ref: scu.649143

Short question about the entitlement of a company which is a small or medium-sized enterprise (‘SME’) to enhanced tax relief for expenditure on research and development (‘R and D tax relief’) pursuant to provisions which were first enacted in section 69 of, and schedule 20 to, the Finance Act 2000, and are now contained (together with provisions relating to certain other reliefs of a similar nature) in Part 13 of the Corporation Tax Act 2009 (sections 1039 to 1142).

Citations:

[2010] EWHC 1609 (Ch), [2010] STC 2283, [2010] STI 2120, [2010] BTC 873

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 27 November 2022; Ref: scu.420025

Advance Corporation Tax payments

Citations:

[2008] EWCA Civ 70, [2008] STC 508

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 27 November 2022; Ref: scu.264497

The issue on this appeal is whether debits to the profit and loss accounts of the taxpayer companies, required by generally accepted accounting practice and resulting from the grant to their employees by the trustees of an employee benefit scheme of options to acquire shares in the holding company of the group, are allowable as deductions in the computation of their profits for the purposes of corporation tax.

Judges:

Lord Justice David Richards

Citations:

[2020] EWCA Civ 663

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 27 November 2022; Ref: scu.650929

The purchase and conversion of a vessel and barge to be used as permanently moored floating restaurant was held not to be the provision of plant to attract allowances.

Citations:

(1979) 53 TC 67

Jurisdiction:

England and Wales

Cited by:

Cited – Lingfield Park (1991) Limited v Shove CA 31-Mar-2004
The taxpayers sought capital allowances on the costs of installing an artificial all-weather race track.
Held: The track was not either plant or machinery, and the taxpayer was not eligible for the relief. The only reasonable conclusion was . .
Lists of cited by and citing cases may be incomplete.

Corporation Tax

Updated: 26 November 2022; Ref: scu.196000

CORPORATION TAX – on a purposive construction of s 11, s 61, s 67, s 70A to 70E CAA 2001 were the appellants entitled to additional writing down capital allowances – no – appeal dismissed

Citations:

[2020] UKFTT 162 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 26 November 2022; Ref: scu.650678

The taxpayer claimed capital allowances for expenditure on purpose built permanent quarantine kennels.
Held: It was not expenditure on plant. To decide whether a structure is plant so as to qualify for capiltal allowances, the question is whether the item can reasonably be called apparatus with which the trade is carried on, as opposed to the premises in or on which it is carried on.

Judges:

Sir Donald Nicholls VC

Citations:

(1992) 65 TC 15

Jurisdiction:

England and Wales

Cited by:

Cited – Lingfield Park (1991) Limited v Shove CA 31-Mar-2004
The taxpayers sought capital allowances on the costs of installing an artificial all-weather race track.
Held: The track was not either plant or machinery, and the taxpayer was not eligible for the relief. The only reasonable conclusion was . .
Lists of cited by and citing cases may be incomplete.

Corporation Tax

Updated: 25 November 2022; Ref: scu.195998

‘a number of important substantive and procedural issues arising out of a series of closure notices issued by HMRC to Investec Asset Finance plc (‘IAF’) and Investec Bank plc (‘IBP’) in respect of their liability for corporation tax in the accounting periods between 1 April 2006 and 31 March 2010. The substantive issues concern the relationship between the statutory provisions concerning the taxation of profits made by partnerships and the taxation of a company’s business where that business includes owning interests in partnerships. Generally speaking, where a partnership is carried on by persons at least one of which is a company, it is not treated as a separate entity for tax purposes. According to sections 111 and 114 of the Income and Corporation Tax Act 1988 (‘ICTA’), the profits of the partnership are first calculated for the purposes of corporation tax as if the partnership were a company but then those profits are taxed in the hands of the corporate partners according to their proportionate interests in the partnership. Where those partners are companies rather than individuals, those companies are also liable for corporation tax on their own business profits under section 42 of the Finance Act 1998. ‘

Citations:

[2020] EWCA Civ 579

Links:

Bailii

Statutes:

Income and Corporation Tax Act 1988

Jurisdiction:

England and Wales

Corporation Tax

Updated: 24 November 2022; Ref: scu.650530

Citations:

[2008] EWCA Civ 58, [2008] STC 398

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

At SCIT – Bank of Ireland Britain Holdings Ltd v Revenue Customs SCIT 6-Jun-2006
SCIT Corporation tax – tripartite repo transaction with two non-resident parties – whether resident party deemed to be in receipt of interest on deemed loan – whether deemed annual payment representing deemed . .
Appeal from – Revenue and Customs v Bank of Ireland Britain Holdings Ltd ChD 30-Apr-2007
The court asked whether a tax avoidance scheme succeeded in its object of generating a loss for tax purposes in a situation where the taxpayer suffered no corresponding commercial loss. . .

Cited by:

Cited – Harding v Revenue and Customs CA 23-Oct-2008
Lapsed Currency conversion option lost status
The taxpayer appealed his assessment to Capital Gains Tax on his redemption of loan notes arising following the sale of his computer company. He said that they were qualifying corporate bonds. The question was whether a security in which a currency . .
Lists of cited by and citing cases may be incomplete.

Corporation Tax

Updated: 22 November 2022; Ref: scu.264270

The court was asked whether, as counsel for the appellant taxpayers graphically submitted, Parliament has ‘surrendered to accountants’ the determination of the taxable profits and allowable losses resulting from derivative contracts.

Citations:

[2020] EWCA Civ 547

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 20 November 2022; Ref: scu.650177

CORPORATION TAX – carry forward of losses under section 343 ICTA 1988 – company reconstruction – quantum of losses available to be carried forward – relevant assets and liabilities test in section 343(4) and 344(5) and (6)ICTA 1988 – identifying the relevant assets and liabilities – appeal dismissed

Citations:

[2019] UKFTT 699 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 20 November 2022; Ref: scu.646910

CORPORATION TAX – whether claimed expenditure evidenced – No – trading losses reduced to nil – no qualifying expenditure for the purposes of R and D credits – appeal dismissed

Citations:

[2019] UKFTT 683 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 19 November 2022; Ref: scu.646914

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

FTTTx CORPORATION TAX – capital allowances – plant and machinery – excavation support equipment hired out – design service – whether first year allowances available under Capital Allowances Act 2001 – yes – appeal allowed

Citations:

[2012] UKFTT 739 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 17 November 2022; Ref: scu.472746

FTTTx Corporation tax. Employee benefit trust. Section 43(11) Finance Act 1989. Is a trustee an intermediary? Dextra Accessories and Sempra Metals considered.

Citations:

[2012] UKFTT 719 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 17 November 2022; Ref: scu.472735

Income/Corporation Tax – Penalty

Citations:

[2012] UKFTT 732 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 17 November 2022; Ref: scu.472731

CORPORATION TAX – PENALTY FOR LATE FILING OF COMPANY’S TAX RETURN – Whether Appellant had reasonable excuse for default – No – Appeal dismissed.

Citations:

[2012] UKFTT 338 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 14 November 2022; Ref: scu.462766

Corporation Tax – enquiry into return – application by company for direction that closure notice be issued – whether evidence justifying continuation of enquiry – no – application granted

Citations:

[2011] UKFTT 269 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 14 November 2022; Ref: scu.442979

FTTTx CORPORATION TAX – adjustments to Appellant’s returns to take account of incorrect treatment of writing off of goodwill – whether such treatment discovered during investigation into Appellant’s tax affairs – yes -appeal dismissed

Citations:

[2013] UKFTT 200 (TC)

Links:

Bailii

Corporation Tax

Updated: 14 November 2022; Ref: scu.472419

FTTTx Capital allowances – research and development allowances for expenditure on vaccine research and development – claim by partners of limited partnership – whether arrangements a sham – whether partnership trading – whether partners entitled to loan interest

Citations:

[2013] UKFTT 73 (TC)

Links:

Bailii

Corporation Tax

Updated: 14 November 2022; Ref: scu.472278

Life company’s management expenses were allowable against income under Sch D Case 1, but not allowable on income minus expenses basis.

Citations:

Times 24-Feb-1998, [1998] EWCA Civ 244

Statutes:

Income and Corporation Taxes Act 1988 75 76

Jurisdiction:

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.

Corporation Tax

Updated: 14 November 2022; Ref: scu.143722

The use of a building for data processing does not qualify it as the subjection of goods or materials to any process and therefore no capital allowance was claimable.

Citations:

Times 06-Jan-1998, Gazette 11-Feb-1998, [1997] EWCA Civ 3061

Statutes:

Capital Allowances Act 1990 18

Jurisdiction:

England and Wales

Citing:

Appeal from – Girobank Plc v Clarke (Inspector of Taxes) ChD 21-Mar-1996
The part use of an industrial building as an office defeats a capital allowance claim. . .

Cited by:

Appealed to – Girobank Plc v Clarke (Inspector of Taxes) ChD 21-Mar-1996
The part use of an industrial building as an office defeats a capital allowance claim. . .
Lists of cited by and citing cases may be incomplete.

Corporation Tax

Updated: 13 November 2022; Ref: scu.143460

Penalty – Late filing of corporation tax return – Whether reasonable excuse on the facts – No – Appeal dismissed -paragraph 18 schedule 18 Finance Act 1998

Citations:

[2011] UKFTT 248 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 12 November 2022; Ref: scu.442978

CORPORATION TAX – scheme to avoid tax on chargeable gains – whether derivative transactions gave rise to chargeable gains and losses – whether loss arising on disposal of shares in group company was an allowable loss – ICTA, s 128, and TCGA, ss 2 and 143 – application of Ramsay principle

Citations:

[2012] UKUT 362 (TCC), FTC/72 and 79/2011

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 10 November 2022; Ref: scu.466694

FTTTx CORPORATION TAX – purported assignments of unregistered trade marks in gross (newspaper mastheads) by subsidiaries to their parent company – whether valid under common law – held no – alternatively on the basis that they were valid whether certain of them were unlawful distributions pursuant to sections 263 and 270(2) Companies Act 1985 – held no – whether purported licences-back of the trade marks by the parent company to the subsidiaries were for a licence fee in excess of market value – found yes – and whether the licence fees were unlawful distributions of capital by the subsidiaries – Progress Property Co Ltd v Moore [2011] 1 WLR 1 considered – held no – whether the licence fees were capital receipts or income receipts in the hands of the parent company – held capital – whether Sch. 29 FA 2002 applies to the licences – held no, because there was no post-commencement expenditure on their creation – whether the purported assignments and licences-back were tax avoidance arrangements within para. 111, Sch. 29 FA 2002 – held yes – whether the one of the main purposes for which the subsidiaries and parent entered into loan relationships to facilitate the transactions was a tax avoidance purpose within para. 13, Sch. 9 FA 1996 – held yes – whether any debit under Ch. II, Pt. IV, FA 1996 was attributable to the tax avoidance purpose – held no – appeals allowed in part

Judges:

John Walters QC HHJ

Citations:

[2012] UKFTT 696 (TC)

Links:

Bailii

Statutes:

Companies Act 1985 263 270(2)

Jurisdiction:

England and Wales

Corporation Tax

Updated: 09 November 2022; Ref: scu.466252

FTTTx Corporation Tax – accounting treatment of intra-group transactions – loan relationship provisions – FA 1996, Part IV, Ch II- whether accounting treatment adopted GAAP compliant – no – FRS 5, 18 -interest strip – whether principal should be partially de-recognised in creditor’s accounts – yes – whether receipts of stripped interest within FA 1996 s 84(1)(b) – no – whether FA 1996 s 84(2)(a) applies – no – appeal dismissed

Citations:

[2012] UKFTT 385 (TC)

Links:

Bailii

Corporation Tax

Updated: 09 November 2022; Ref: scu.466264

FTTTx Corporation tax – deductibility of expenditure – sponsorship payments intended to improve fortunes of sports club – expectation of trade benefits principally as a result of recognition by others involved with the club of taxpayer’s benefaction – dual purpose of benefitting sports club and taxpayer’s trade – payments not deductible – direct promotion of taxpayer’s business also obtained – value of that promotion not deductible – Income and Corporation Taxes Act 1988, s 74

Judges:

Nicholas Paines QC

Citations:

[2012] UKFTT 599 (TC)

Links:

Bailii

Statutes:

Income and Corporation Taxes Act 1988 74

Citing:

See Also – Interfish Ltd v Revenue and Customs FTTTx 13-May-2010
FTTTx Corporation tax – deductibility of expenditure – sponsorship payments intended to improve fortunes of sports club – expectation of trade benefits principally as a result of recognition by others involved . .

Cited by:

Appeal from – Interfish Ltd v HM Revenue and Customs UTTC 16-Jul-2013
UTTC Corporation tax – deductibility of expenditure – sponsorship payments intended to improve fortunes of sports club – expectation of trade benefits principally as a result of recognition by others involved . .
At FTTTx – Interfish Ltd v HM Revenue and Customs CA 27-Jun-2014
The company sought to set payments it had made to support a local rugby club off against its income for Corporation Tax purposes.
Held: The appeal failed. The requirement was that the expenditure be wholly necessarily and exclusively for the . .
Lists of cited by and citing cases may be incomplete.

Corporation Tax

Updated: 09 November 2022; Ref: scu.466018

Appeal by the taxpayer from a decision of the Special Commissioners dismissing the taxpayer’s appeal against assessments to tax made in accordance with Section 747(4)(a) of the Income and Corporation Taxes Act 1988.

Citations:

[1997] EWCA Civ 2193, [1997] STC 1179, [1997] BTC 471

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 09 November 2022; Ref: scu.142590

Capital allowances.
The taxpayer operated automatic car wash sites. It claimed capital allowances for the entirety of a wash hall, housed within a building incorporating washing machinery and control equipment, and surrounded by tarmac areas used for circulation, queuing and parking. It said that the entire site, or entire wash hall, was a single item of qualifying plant. The Inspector accepted that some of the car wash facilities were plant, but not each entire site. The Special Commissioners allowed the taxpayer’s appeal. The Crown succeeded on appeal to the judge.
Held: The appeal was denied, applying the ‘premises’ test. The only reasonable conclusion was that neither an entire site nor an entire wash hall (i.e. the building housing the car wash machinery) could be regarded as a unit of plant: although they satisfied the business use test, they failed the premises test, as both the entire site and the wash hall functioned as premises, not as plant. ‘It is hard to see how land, as distinct from a structure could ever be apparatus functioning as plant.’

Judges:

Peter Gibson LJ, Robert Walker and Beldam LJJ

Citations:

[1997] EWCA Civ 2128, (1997) 69 TC 575

Statutes:

Capital Allowances Act 1990 22 24

Jurisdiction:

England and Wales

Citing:

Appeal from – Attwood (Inspector of Taxes) v Anduff Car Wash Ltd ChD 11-Dec-1995
No capital allowances for car wash structures. They were part of premises, not plant. . .

Cited by:

Cited – Lingfield Park (1991) Limited v Shove CA 31-Mar-2004
The taxpayers sought capital allowances on the costs of installing an artificial all-weather race track.
Held: The track was not either plant or machinery, and the taxpayer was not eligible for the relief. The only reasonable conclusion was . .
Lists of cited by and citing cases may be incomplete.

Corporation Tax

Updated: 09 November 2022; Ref: scu.142525

CORPORATION TAX – land remediation relief – did the replacement or improvement of iron gas mains satisfy the conditions in paragraph 12 of Schedule 22 Finance Act 2001 to qualify for relief for remediation of contaminated land – no – in certain cases, the Appellant had not acquired rights in or over land in the United Kingdom whilst, in other cases, although the Appellant had acquired such rights and the land was in a contaminated state at the time of acquisition by virtue of the gas in the pipes at that time, the expenditure incurred by the Appellant was not ‘on’ or ‘in relation to’ the land and was therefore not ‘qualifying land remediation expenditure’ and, in any event, the land was in a contaminated state by virtue of something done or omitted to be done by a person with a ‘relevant connection’ to the Appellant

Citations:

[2020] UKFTT 121 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 09 November 2022; Ref: scu.649210

Application to make a late appeal against jeopardy amendments made by HMRC to Appellant’s self assessments- whether earlier appeal valid application granted

Citations:

[2011] UKFTT 254 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 06 November 2022; Ref: scu.442985

Europa Reference for a preliminary ruling – Directive 90/435/EEC – Concept of withholding tax – Application of a levy of 5% at the time of distribution of dividends and of the ‘refund of the adjustment surtax’ by an Italian subsidiary to its parent company established in the Netherlands, pursuant to a bilateral convention.

Citations:

C-338/08, [2010] EUECJ C-338/08

Links:

Bailii

Jurisdiction:

European

Corporation Tax

Updated: 06 November 2022; Ref: scu.420195

DIRECT TAX – penalty for late submission of Corporation tax return by liquidator – no reasonable excuse for late submission

Citations:

[2011] UKFTT 244 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 05 November 2022; Ref: scu.443009

Wynchgate Construction Ltd, an associated company of the taxpayer company, (‘WCL’), commenced a trade in 1994 of providing the services of British construction workers to a contractor operating in Germany. The trade only lasted for about 5 months. WCL discontinued it in May 1994 but had not received payment, or ‘full payment’ for its services. In October 1994 WCL received a payment of just over pounds 100,000 and put it on deposit at the bank. It also had a current account which contained a small credit balance of pounds 300 or so. In the relevant period, 1995, WCL: (i) carried on no trade; (ii) closed its current account and transferred the small credit balance to the deposit account; (iii) paid a corporation tax liability; and (iv) earned interest on its deposit account.
Held: An associated company ceasing to trade and whose only activity was in receiving interest on that deposit was not trading for the purposes of calculating lower rates of tax.
CS Park J: ‘ [The Special Commissioner] has taken it for granted, rightly in my judgment, that if WCL was not carrying on an investment business it was not carrying on any other kind of business. The kinds of activities which our tax law recognises as species of business are trades, professions, vocations and investment. I am not aware of any other, and if another exists I am sure that it does not apply to the facts of WCL in 1995.
Mr Furness accepts that WCL was not carrying on an investment business merely by having its money on deposit at the bank. When I asked him what sort of business WCL was carrying on he said: ‘It was in the business of gainfully employing its assets while keeping itself in existence pending any trading opportunity which might arise.’ That is not a kind of business. It is just a description of the company’s profile in the relevant period, stated in the grandest terms that can be managed for facts which amounted to scarcely anything, and then the epithet ‘business’ is attached.
It seems to me that the question which [the Special Commissioner] asked himself, though not couched in the precise words of the statute, was nevertheless the real question to which the statute gave rise on the particular facts of this case. He tacitly assumed that if WCL was not carrying on an investment business, it was not carrying on any business at all. In my judgment he was entirely right, and there is no misstatement of law to be found in his decision.’

Judges:

Park J

Citations:

Times 25-Mar-1998, [1998] STC 482

Statutes:

Income and Corporation Taxes Act 1988 13

Jurisdiction:

England and Wales

Cited by:

Cited – HM Revenue and Customs v Salaried Persons Postal Loans Ltd ChD 7-Apr-2006
The company had ceased trading, but rental income was still generated from its former premises. The Revenue sought to include the receipt in calculations of whether the company was entitled to a small company corporation tax rate. The Revenue . .
Lists of cited by and citing cases may be incomplete.

Corporation Tax

Updated: 05 November 2022; Ref: scu.82632

CORPORATION TAX – Cross Border Group Relief for losses – Schedule 18 FA 1988 – Marks and Spencer exception – Holmen and Memira – UK/USA Double Taxation Conventions – OECD commentaries – sister EU companies – Felixstowe and Philips – US ultimate parent – FCE – Boake Allen – no possibilities test – impact of domestic law – appeal dismissed

Citations:

[2020] UKFTT 139 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 05 November 2022; Ref: scu.649204

FTTTx CORPORATION TAX – deemed charge under s 419(1) ICTA 1988 on loans to participators – whether money loaned under employee participation scheme – yes – whether a debt arose immediately on transfer of shares under scheme – yes – appeal dismissed

Judges:

Barbara Mosedale

Citations:

[2012] UKFTT 430 (TC)

Links:

Bailii

Corporation Tax

Updated: 03 November 2022; Ref: scu.462775

CORPORATION TAX – penalties for late filing of company tax returns for three accounting periods – insufficient evidence that HMRC had given proper notice to file the returns under paragraph 3 of Schedule 18 Finance Act 1998 – appeal allowed

Citations:

[2019] UKFTT 575 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 03 November 2022; Ref: scu.644014

Reference for a preliminary ruling – Article 63 TFEU – Free movement of capital – Tax on financial transactions – Transactions relating to derivative financial instruments whose underlying security is a security issued by a company resident in the Member State of taxation – Tax due regardless of the place of conclusion of the transaction – Administrative and reporting obligations

Citations:

C-565/18, [2020] EUECJ C-565/18, , [2019] EUECJ C-565/18_O

Links:

Bailii, Bailii

Jurisdiction:

European

Corporation Tax

Updated: 01 November 2022; Ref: scu.660152

Corporation tax – capital allowances – ss11, 21, 23 Capital Allowances Act 2001 – expenditure on construction of a tails management facility at a nuclear site – identification of the assets – whether the assets function as plant – whether any of the expenditure is on the provision of a building within s21 CAA 2001 – if so, whether any of the expenditure is saved by List C s23 CAA 2001 – appeal dismissed

Citations:

[2019] UKFTT 522 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 01 November 2022; Ref: scu.641359

CORPORATION TAX – Claim for chargeable gains rollover relief (following a compulsory purchase) in respect of expenditure on constructing buildings on land already held – conclusion that such expenditure did not amount to ‘acquiring other land’ for the purpose of the relief and therefore that the claim was invalid but that the discovery assessment issued by the Respondents in this respect was based on a discovery which was ‘stale’ and was therefore invalid – appeal upheld

Citations:

[2019] UKFTT 503 (TC), [2019] SFTD 1288

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 01 November 2022; Ref: scu.641346

Corporation tax – capital allowances – transfer of trade using leased satellites whose launch costs had been separately incurred by transferor – whether successor entitled to writing down allowances on an apportioned part of the market value at the time of transfer based on predecessor’s launch costs of the satellites – sections 78(1) and 61(4) CAA 1990 – held no

Citations:

[2019] UKFTT 558 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 01 November 2022; Ref: scu.641328

The dispute concerns each of the Respondents’ entitlement to set off foreign exchange losses against their liability to corporation tax. The exchanges loss arose as a result of the Respondent companies changing their functional accounting currencies from sterling to US dollars on 23 December 2008 at a time when the only asset on their balance sheets was a very substantial inter-company debt owed to them by their parent company. The debts were denominated in sterling but then had to be converted into dollars when the companies’ accounts were restated in dollars. The next day, the debts were disposed of as part of a group restructuring. The exchange losses arose from the Respondents’ ‘loan relationships’ as that term is used in Chapter 2 of Part IV of the Finance Act 1996 (‘Chapter 2’).

Judges:

Lady Justice Rose

Citations:

[2020] EWCA Civ 299

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 28 October 2022; Ref: scu.648562

Corporation Tax – Late Filing – Flat-Rate Penalties – Schedule 18 Finance Act 1998 – Were the penalties correctly imposed? – Yes – Was there a reasonable excuse? – No – Appeal dismissed.

Citations:

[2019] UKFTT 431 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 28 October 2022; Ref: scu.641234

Correct classification, for the purposes of capital allowances, of expenditure on a building provided for the business of the appellant.

Judges:

Carnwath LJ, Hallett LJ, Lawrence Collins LJ

Citations:

[2007] EWCA Civ 545, [2007] Bus LR 1686, [2007] BTC 607, [2007] STC 1442, [2007] STI 1773, [2007] NPC 73, (2007) 151 SJLB 861

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

At SCIT – Maco Door and Window Hardware (UK) Ltd v Revenue and Customs SCIT 25-Oct-2005
SCIT CAPITAL ALLOWANCES – industrial buildings allowances – building used to house goods manufactured by the Appellant’s Austrian parent company for sale to wholesalers in the UK to be used in manufacture – . .
Appeal from – Revenue and Customs v Maco Door and Window Hardware (Uk) Ltd ChD 19-Jul-2006
The Revenue sought to disallow for industrial buildings allowance sums expended on warehouse premises which were to be used to store window products imported for use in other manufacturing processes.
Held: The Revenue’s appeal succeeded. ‘The . .

Cited by:

Appeal from – Maco Door and Window Hardware (UK) Ltd v Revenue and Customs HL 30-Jul-2008
The House was asked whether a warehouse used to store purchases made by the company from its parent company in Austria, was an ‘industrial building or structure’. It was agreed that the facility was used for the storage of materials for use in later . .
Lists of cited by and citing cases may be incomplete.

Corporation Tax

Updated: 27 October 2022; Ref: scu.253493

CORPORATION TAX – Late Filing Flat-Rate Penalties – Schedule 18 Finance Act 1998 – Were the penalties correctly imposed? – Yes – Was there a reasonable excuse? – No – Appeal dismissed

Citations:

[2019] UKFTT 486 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 25 October 2022; Ref: scu.641257

Corporation tax – penalties for late filing of Corporation Tax returns – returns filed on time but without supplemental information – returned by HMRC – agent error – whether reasonable excuse – no – appeal dismissed

Citations:

[2019] UKFTT 142 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 25 October 2022; Ref: scu.635695

Capital allowances – LLPs – expenditure on software licences – ambit of closure notices – trading – incurring of expenditure – LLP as small enterprise – long life assets – anti-avoidance rules – main object of LLP

Citations:

[2018] UKFTT 548 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 25 October 2022; Ref: scu.632294

CAPITAL ALLOWANCES – gas cavities – whether plant – no – whether excluded from allowances under s 22 CAA -yes

Citations:

[2019] UKFTT 498 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 24 October 2022; Ref: scu.641312

Corporation tax – information notice seeking documents concerning property transactions to assist in establishing location of central management and control of company – conveyancing file of solicitors acting on purchase – legal professional privilege – Information Notice: Resolution of Disputes as to Privileged Communications Regulations 2009

Citations:

[2018] UKFTT 502 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 23 October 2022; Ref: scu.632295

CORPORATION TAX – whether the UK legislation in relation to intra-group disposals is compliant with EU law – consideration of the applicable freedoms, whether or not the provisions in question restrict a freedom, whether or not the provisions can be justified by the lack of objective comparability of situation or by reference to the balanced allocation of taxing powers between Member States, the proportionality of the restriction, the doctrines of conforming interpretation and disapplication – consideration of movements of capital – in relation to the disposal of shares to the Dutch resident parent company, disapplication of the restriction limiting no gain/no loss disposals to transferees within the UK tax net – in relation to the disposal of intangible assets to the Swiss resident sister company, UK legislation compatible with EU law

Citations:

[2019] UKFTT 207 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 22 October 2022; Ref: scu.635752

CAPITAL ALLOWANCES – Conversion of flight training centre into 124-room hotel – Whether entitled to Business Premises Renovation Allowances on whole or only elements of sum paid to developer – Appeal allowed in part

Citations:

[2019] UKFTT 212 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 22 October 2022; Ref: scu.635762

Corporation Tax – Late Filing Flat-Rate Penalties

Citations:

[2019] UKFTT 320 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 21 October 2022; Ref: scu.637906

Corporation Tax – Loan Relationship Rules

Citations:

[2019] UKFTT 254 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 21 October 2022; Ref: scu.637857

Income Tax/Corporation Tax : Sub-Contractors In The Construction Industry

Citations:

[2019] UKFTT 309 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 19 October 2022; Ref: scu.637892

CORPORATION TAX – computation of profits – deductions for replacement of tools – implements, utensils, articles – s 68 CTA 2009 and s 74(1)(d) TA88; mistake claim -para 51A Sch 18 FA 98 whether generally prevailing practice.

Citations:

[2019] UKFTT 131 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 17 October 2022; Ref: scu.635733

CORPORATION TAX – Capital Allowances – Whether Car Valeting Bay plant? – No on facts – Appeal dismissed

Citations:

[2014] UKFTT 312 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 17 October 2022; Ref: scu.525298

Corporation tax – whether profits under-declared – whether liability to penalty

Citations:

[2010] UKFTT 161 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 17 October 2022; Ref: scu.422205

The court asked whether a tax avoidance scheme succeeded in its object of generating a loss for tax purposes in a situation where the taxpayer suffered no corresponding commercial loss.

Judges:

Henderson J

Citations:

[2007] EWHC 941 (Ch)

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

Appeal from – Bank of Ireland Britain Holdings Ltd v Revenue Customs SCIT 6-Jun-2006
SCIT Corporation tax – tripartite repo transaction with two non-resident parties – whether resident party deemed to be in receipt of interest on deemed loan – whether deemed annual payment representing deemed . .

Cited by:

Appeal from – Revenue and Customs v Bank of Ireland Britain Holdings Ltd CA 8-Feb-2008
. .
Lists of cited by and citing cases may be incomplete.

Corporation Tax

Updated: 17 October 2022; Ref: scu.251569

TRANSACTIONS IN SECURITIES – company with distributable reserves acquiring company with negative reserves having loan stock acquired by the shareholder of the parent company – loans by the parent company to the subsidiary which repaid the loan stock – whether caught by Circumstance D – yes; hive-down of trade of parent to subsidiary – whether repayment of loan stock out of subsequent profits of the subsidiary caught – no; whether the reference in Circumstance C(2) to assets representing a return of capital which under the law of the country of incorporation is available for distribution limited to foreign-incorporated companies – no

Citations:

[2010] UKFTT 333 (TC), [2010] SFTD 1231, [2010] STI 2644

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 16 October 2022; Ref: scu.422296

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 ss 21, 25 – Appellant successful – Appeal allowed

Citations:

[2010] UKFTT 146 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 16 October 2022; Ref: scu.422162

Corporation tax – deductibility of loss on written down expenditure on residential property transferred to director as bonus – treated as current asset in accounts – whether on capital or revenue account – s 74(1)(e) ICTA 1988

Citations:

[2009] UKFTT 357 (TC), [2010] SFTD 454, [2010] STI 683

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax

Updated: 15 October 2022; Ref: scu.409158

(Judgment) Reference for a preliminary ruling – Common tax regime applicable to parent companies and subsidiaries of different Member States – Directive 2011/96 / EU – Article 2, sub a), i) and iii), and Annex I, part A, sub ab), and Part B, last indent – Concepts of ‘companies incorporated under the law of the United Kingdom’ and of ‘corporation tax in the United Kingdom’ – Companies registered in Gibraltar and which are subject to corporation tax there

Citations:

C-458/18, [2020] EUECJ C-458/18, ECLI:EU:C:2020:266, [2019] EUECJ C-458/18_O

Links:

Bailii, Bailii

Jurisdiction:

European

Corporation Tax

Updated: 14 October 2022; Ref: scu.660124