In Beacon Estates (Chepstow) v HMRC (TC03808 – 16 July 2014) the FTT found that a loss-making chartering business was carried on with a view to profit.
The main activity of the company was the construction and management of property. However its director decided to branch out into the boat chartering business and after an 18 month search purchased a 92 foot yacht aptly called Supertoy.
Although the chartering rates were high an expensive refurbishment programme meant that the business only became profitable after three years in 2001. Unfortunately in 2003 Supertoy suffered a ‘catastrophic engine failure’ leading to huge repair and legal costs.
The issue was the allowability of the losses of the chartering business. This in turn depended on whether the chartering business had been carried on with a view to profit (ICTA 1988 s...
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In Beacon Estates (Chepstow) v HMRC (TC03808 – 16 July 2014) the FTT found that a loss-making chartering business was carried on with a view to profit.
The main activity of the company was the construction and management of property. However its director decided to branch out into the boat chartering business and after an 18 month search purchased a 92 foot yacht aptly called Supertoy.
Although the chartering rates were high an expensive refurbishment programme meant that the business only became profitable after three years in 2001. Unfortunately in 2003 Supertoy suffered a ‘catastrophic engine failure’ leading to huge repair and legal costs.
The issue was the allowability of the losses of the chartering business. This in turn depended on whether the chartering business had been carried on with a view to profit (ICTA 1988 s...
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