The company had incurred capital expenditure in machinery and plant for trading before 1972. The 1975 Act prevented them claiming the expenditure as losses, and they sought to carry them forward to 1973 when additional claims were possible. The Revenue said that the allowances had to be claimed in the periods incurred.
Held: The Crown’s appeal failed. The legislation did not oblige companies to take the allowances in the year as suggested.
Citations:
[1987] 1 FTLR 253, [1987] STC 52
Statutes:
Jurisdiction:
England and Wales
Cited by:
Cited – Smith v Secretary of State for Work and Pensions and Another HL 12-Jul-2006
The House considered whether under the 1992 Regulations a self-employed parent could use for his child support calculation his net earnings as declared to the Revenue, which would allow deduction of capital and other allowances properly claimed . .
Lists of cited by and citing cases may be incomplete.
Corporation Tax
Updated: 21 July 2022; Ref: scu.243092