Catherine Robins and Sam Wardleworth (Pinsent Masons) review an interesting Upper Tribunal decision on the test for trading, 'golden contracts' and the availability of enterprise zone allowances and legitimate expectation.
The recent Upper Tribunal (UT) decision in Cobalt Data Centre 2 LLP and Cobalt Data Centre 3 LLP v HMRC [2019] UKUT 342 (TCC) concerned enterprise zone allowances (EZAs) a form of capital allowances. The case considers ‘golden contracts’ the extent to which expenditure qualifies for allowances and the meaning of carrying on business with a view to profit. It is also a rare example of a taxpayer winning a judicial review application after HMRC tried to resile from taxpayer guidance.
Facts of the case
In April 2011 two LLPs (the LLPs) acquired an assignment of rights under a 2006 construction contract providing for construction works to be undertaken at an enterprise zone in North Tyneside. One...
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Catherine Robins and Sam Wardleworth (Pinsent Masons) review an interesting Upper Tribunal decision on the test for trading, 'golden contracts' and the availability of enterprise zone allowances and legitimate expectation.
The recent Upper Tribunal (UT) decision in Cobalt Data Centre 2 LLP and Cobalt Data Centre 3 LLP v HMRC [2019] UKUT 342 (TCC) concerned enterprise zone allowances (EZAs) a form of capital allowances. The case considers ‘golden contracts’ the extent to which expenditure qualifies for allowances and the meaning of carrying on business with a view to profit. It is also a rare example of a taxpayer winning a judicial review application after HMRC tried to resile from taxpayer guidance.
Facts of the case
In April 2011 two LLPs (the LLPs) acquired an assignment of rights under a 2006 construction contract providing for construction works to be undertaken at an enterprise zone in North Tyneside. One...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
