Commercial Practice is to be followed in apportioning payments under a lease between different tax years. There is no requirement that expenditure must be charged to year it in which technically falls due, but tax accounts must not give a misleading picture of trading results.
Citations:
Gazette 08-Sep-1993, Ind Summary 26-Jul-1993, Times 01-Jul-1993, [1994] Ch 107
Statutes:
Income and Corporation Taxes Act 1988 381
Jurisdiction:
England and Wales
Citing:
Appeal from – Threlfall v Jones Inspector of Taxes, Gallagher v Same ChD 1-Mar-1993
The taxpayer had acquired capital assets under a financing arrangement in which payments were spread over several tax periods. It was appropriate to treat those payments in according with normal accounting practice, rather than to seek to pull them . .
Cited by:
Cited – Revenue and Customs v William Grant and Sons Distillers Ltd HL 28-Mar-2007
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 . .
Lists of cited by and citing cases may be incomplete.
Income Tax
Updated: 26 October 2022; Ref: scu.80737
