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These cases are from the lawindexpro database. They are now being transferred to the swarb.co.uk website in a better form. As a case is published there, an entry here will link to it. The swarb.co.uk site includes many later cases.  















Corporation Tax - From: 1980 To: 1984

This page lists 11 cases, and was prepared on 27 May 2018.

 
Vibroplant Ltd v Holland (HM Inspector of Taxes) (1981) 54 TC 658; [1980] STC 671
1980
CA
Dillon J
Corporation Tax
The use of the buildings for servicing and repairing the plant which Vibroplant wished to hire out, was an essential part of Vibroplant's business of plant hire operators and part of their trade. Although not required to decide the point, the court expressed a view as to whether the repair and servicing of the plant might constitute part of the business. He accepted that that activity might fall within the definition of "part of a trade".
1 Citers


 
In re Mesco Properties Ltd [1980] 1 WLR 96
1980
CA
Buckley LJ, Bridge LJ, Templeman LJ
Corporation Tax, Insolvency
Tax legislation provided that the company was chargeable to corporation tax on a capital gain arising in the winding up. Held: The appeal failed. It was a tax which the liquidator was bound to discharge by payment, and the payment was a "necessary disbursement" for the purposes of the winding-up rules.
1 Cites

1 Citers


 
Simmons (Liquidator of Lionel Simmons Properties) v Inland Revenue Commissioners [1980] UKHL TC_53_461
19 Jun 1980
HL

Corporation Tax
HL Corporation tax - Shortfall - Finance Act 1965, s 77 - Acquisition and development of properties by group of associated companies - Decision to liquidate - Sales of properties - Whether trade or investment - Whether properties appropriated to trade.
Finance Act 1965 77
[ Bailii ]
 
Inland Revenue Commissioners v Burmah Oil Co Ltd [1981] UKHL TC_54_200; 1982 SLT 348; [1982] STC 30; 1982 SC (HL) 114; 54 TC 200; [1982] TR 535; [1980] TR 397
3 Dec 1981
HL

Corporation Tax
HL Corporation tax - Chargeable gains - Allowable losses - Tax avoidance scheme involving disposal of shares by parent company following rights issue by subsidiary company - Consideration for rights issue - Whether market value or issue price - Finance Act 1965, s 22(4), Sch 7, para 4 - Whether loss to which scheme gave rise to be disregarded.
Finance Act 1965 22(4)
1 Citers

[ Bailii ]
 
Pilkington Brothers v Inland Revenue Commissioners [1982] UKHL TC_55_705
21 Jan 1982
HL

Corporation Tax
Corporation tax - Capital allowances - Scheme for the sale of allowances in respect of a new ship by shipowners to a company having no other connection with shipping - Purchasing company made member of same group as shipowners subsidiary which ordered ship - Whether scheme involved "arrangements" within s 29(1) (b) (ii), Finance Act 1973, such as to render it ineffective.
Finance Act 1973
[ Bailii ]
 
Inland Revenue Commissioners v Scottish and Newcastle Breweries Ltd [1982] 1 WLR 322; (1982) 55 TC 251; [1982] UKHL TC_55_252
4 Mar 1982
HL
Lord Wilberforce
Corporation Tax
Expenditure on refurbishment, decor and fittings in hotels was held to be plant though forming part of the setting of the hotels. The House considered the interpretation of undefined expressions in fiscal legislation, such as "trade", "income", "office" and "plant". Lord Wilberforce said: "It naturally happens that as case follows case, and one extension leads to another, the meaning of the word gradually diverges from its natural or dictionary meaning. This is certainly true of "plant." No ordinary man, literate or semi-literate, would think that a horse, a swimming pool, moveable partitions, or even a dry dock was plant-yet each of these has been held to be so: so why not such equally improbable items as murals, or tapestries, or chandeliers?" and "There is no universal formula which can solve these puzzles. In the end each case must be resolved, in my opinion, by considering carefully the nature of the particular trade being carried on, and the relation of the expenditure to the promotion of the trade. I do not think that the court should shrink, as a backstop, from asking whether it can really be supposed that Parliament desired to encourage a particular expenditure out of, in effect, taxpayers' money, and perhaps ultimately, in extreme cases, to say that this is too much to stomach."
1 Citers

[ Bailii ]
 
Cole Bros Ltd v Phillips (Inspector of Taxes) [1982] UKHL TC_55_188; [1982] 1 WLR 1450; 55 TC 188; [1982] STC 307; [1982] 2 All ER 247
11 Mar 1982
HL

Corporation Tax
HL Corporation tax - Capital allowances - Lighting and other apparatus installed in shop premises - Whether "plant" or "setting" within which merchandise was sold - Finance Act 1971, s 41.
[ Bailii ]
 
Stanton Ltd v Drayton Commercial Investment Co Ltd [1982] UKHL TC_55_286; [1982] Com LR 198; [1982] 2 All ER 942; [1983] 1 AC 501; [1982] 3 WLR 214; 55 TC 286; [1982] STC 585
8 Jul 1982
HL

Corporation Tax
Corporation tax - Chargeable gains - Disposal of shares acquired in consideration of issue of new share - Whether amount or value of consideration the agreed issue price or other value - Income and Corporation Taxes Act 1970, ss 21 and 265 - Finance Act 1965, Sch 6, para 4(l)(a) - Finance Act 1971, Sch 10, para 10.
[ Bailii ]
 
Hoechst Finance Limited v Gumbrell (1983) 56 TC 594
1983
CA
Dillon LJ, May LJ
Corporation Tax
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 issue of some guaranteed unsecured loan stock. The loan stock issue was made to raise finance for the other group companies operating within the United Kingdom. Held: the commission was not an expense of management because it could not be severed from the cost of raising the finance. (Dillon LJ) "In the present case it seems to me that the guarantee had to be obtained by the company from its parent in order to raise the money to invest by advances to the other United Kingdom subsidiaries and the company had to agree to pay the parent the continuing commission in order to obtain the guarantee and therefore realistically as part of the price of raising the money. The commission cannot be severed from the cost of acquisition and so equally the annual payments of the commission cannot be severed from the cost of acquisition. It is unreal to regard each annual payment as merely a payment for the current year or the current six months to keep the guarantee on foot as part of the continuing management of the company's business, because the whole obligation in respect of the loan stock and the obligation of the guarantee was undertaken once and for all when the stock was raised and the guarantee was entered into, and, as document 5 shows, the commission was charged by the parent company for giving the guarantee. It all relates back to the giving of the guarantee." (May LJ) "In my opinion, the result of that case is that in this type of situation one has to ask whether the relevant payment can be regarded as properly severable from the costs of acquisition of an investment or the issue of loan stock, on the one hand, or a direct and necessary part of the cost of a normal method of purchase or issue, on the other. If, posing that question, the answer is that it is the latter, then the payment is not an expense of management."
1 Cites

1 Citers


 
Coates v Arndale Properties Ltd [1984] 1 WLR 1328
1984


Corporation Tax
A transaction might be so clearly inspired by fiscal considerations that its shape and character as a trading transaction would be insufficient to preserve its tax value as such.
1 Citers


 
Payne (Inspector of Taxes) v Barratt Developments (Luton) Ltd [1984] UKHL TC_58_311; 58 TC 311; [1985] RVR 156; [1985] CILL 156; [1985] 1 All ER 257; [1985] 1 WLR 1; [1985] STC 40
13 Dec 1984
HL

Corporation Tax
HL Corporation tax - Stock relief - Whether available to builder on stock of houses and flats received from purchasers in part satisfaction of price of new houses, such houses and flats being sold on in existing state - Whether relief excluded for site of house or merely for its unbuilt-on-garden - Finance Act 1976, Sch 5, para 29.
[ Bailii ]
 
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