The taxpayer company made a smaller profit than its charges, and sought to reallocate the charges against income for other companies within the group. It could do so, but the difference arose over the period for which surrender would be alowed.
Held: The term ‘relief’ is not a term of art. The Income and chargeable gains elements of profits were calculated separately and then aggregated. The annual computation required a system of alowing a trading loss in one year to be set off against a profit in a following year. ‘losses’ meant losses allowed by way of relief against profits and not losses, such as allowable losses, deducted in the computation of profits.
Judges:
Lord Nicholls of Birkenhead Lord Slynn of Hadley Lord Hoffmann Lord Millett Lord Walker of Gestingthorpe
Citations:
[2003] UKHL 70, Times 09-Jan-2004, Gazette 29-Jan-2004, [2004] 1 WLR 82, Gazette 29-Jan-2004
Links:
Statutes:
Income and Corporation Taxes Act 1988 402(1) 403(7) 403(8)
Jurisdiction:
England and Wales
Citing:
Appeal from – Taylor (Inspector of Taxes) v MEPC Holdings Ltd CA 20-Jun-2002
The taxpayer sought to include in the amounts to be set off by surrender against the group’s liability for corporation tax, chargeable gains in respect of allowable losses of a preceding accounting period. They appealed a decision against them at . .
Cited by:
Cited – Atkinson (HM Inspector of Taxes) v Camas Plc CA 6-May-2004
An investment company made an abortive attempt to take over another. It sought to set off against its Corporation Tax, the costs of the professional advice incurred.
Held: The expenses were deductible. . .
Lists of cited by and citing cases may be incomplete.
Corporation Tax
Updated: 08 June 2022; Ref: scu.188921