Corporation Tax - 1992

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This page lists 5 cases, and was prepared on 28 October 2012.

Carr -v- Sayer (1992) 65 TC 15
1992 Sir Donald Nicholls VC	Corporation Tax	Casemap 1 Citers
	The taxpayer claimed capital allowances for expenditure on purpose built permanent quarantine kennels. Held: It was not expenditure on plant. To decide whether a structure is plant so as to qualify for capiltal allowances, the question is whether the item can reasonably be called apparatus with which the trade is carried on, as opposed to the premises in or on which it is carried on.

Ensign Tankers (Leasing) Ltd -v- Stokes (Inspector of Taxes) [1992] 1 AC 655; [1992] CLY 611; [1992] 2 WLR 469; [1992] STC 226
6 May 1992 HL Lord Goff of Chieveley	Corporation Tax	Casemap 1 Cites 1 Citers
	The appellants entered into partnerships with a film production company. By doing so they intended to make available to themselves first year allowances on the capital expenditure incurred. Loan agreements protected them from any eventual loss. Held: Money which had been spent mainly for trading had the benefit of the tax allowances whatever the motive behind for structure of the transactions. Even if a fiscal motive was the sole or paramount motive for a transaction, that would not deprive the action of its proper nature. The legal effect was of a trading transaction with a capital expenditure, and the case was remitted for consideration on that basis. A composite transaction which could fairly be described as involving a "conjuring trick", artificiality and self-cancelling elements, should nonetheless not be called a sham, in the relevant sense.

Lawson (Inspector of Taxes) -v- Johnson Matthey Plc
8 Jul 1992 HL	Corporation Tax
	A payment which was made in order to remove a threat of insolvency was a revenue payment and so was deductible.

Auckland (Inspector of Taxes) -v- Pavh (International) Ltd
29 Jul 1992 ChD	Corporation Tax, Taxes Management
	Reduction of assessment for overcharge can only apply to wrong assessment.
	Taxes Management Act 1970 50(6)

Hunt (Inspector of Taxes) -v- Henry Quick Ltd; King (I of T) -v- Bridisco Ltd
2 Sep 1992 ChD	Corporation Tax
	Platforms installed for storage were plant for capital allowances.