Where a company which had ceased trading and fallen outside the tax regime, subsequently declared a dividend, it was deemed to be a new accounting period, and the dividend did fall to be taxed, and any advance corporation tax could be set off against any corporation tax payments made whilst previously trading.
Lord Hoffmann said: ‘I seldom think that an argument from redundancy carries great weight, even in a Finance Act. It is not unusual for Parliament to say expressly what the courts would have inferred anyway.’
Judges:
Lord Hoffmann
Citations:
Times 07-Apr-2000, [2000] 1 WLR 799, [2000] UKHL 23, [2000] 2 All ER 589
Links:
House of Lords, House of Lords, Bailii
Statutes:
Income and Corporation Taxes Act 1988 12(2)(a)
Jurisdiction:
England and Wales
Citing:
Appeal from – Walker (Inspector of Taxes) v Centaur Clothes Group Ltd CA 25-Jun-1998
After the transfer of a business to a subsidiary with payment left outstanding and no provision for interest but receiving dividends, it was not able to recover Advance Corporation Tax on that payment since it was no longer trading and had no income . .
Cited by:
Cited – Evans Dorothy, Regina v CACD 6-Dec-2004
The defendant appealed her conviction for having breached a restraining order under the 1997 Act. The order required her not to be ‘abusive by words or actions’ towards her neighbour. She had regularly parked her car so as to block her neighbour’s . .
Cited – O’Brien v Department for Constitutional Affairs CA 19-Dec-2008
The claimant was a part time recorder. He claimed to be entitled to a judicial pension.
Held: The Employment Appeal Tribunal was wrong to find an error of law in the decision of the Employment Tribunal to extend time; but the court declined to . .
Lists of cited by and citing cases may be incomplete.
Corporation Tax
Updated: 20 May 2022; Ref: scu.131544
