Market leading insight for tax experts
View online issue

HMRC v Tower MCashback LLP1 (and cross-appeal): capital allowances

Capital allowances

In HMRC v Tower MCashback LLP1 (and cross-appeal) (SC – 11 May) the Supreme Court has unanimously allowed HMRC’s appeal and dismissed the partnerships’ cross-appeals.

Two limited liability partnerships claimed capital allowances in respect of capital expenditure on computer software. 75% of the purchase price of the software was funded by ‘non-recourse loans’ which were indirectly made available by the vendor of the software.

HMRC rejected the claims on the grounds that the expenditure had been incurred ‘with a view to granting to another person a right to use or otherwise deal with any of the software in question’ within CAA 2001 s 45(4).

They issued closure notices against which the partnerships appealed. At the hearing of the appeals HMRC abandoned their original contention with regard to s 45(4) but defended the closure notices...

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:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
EDITOR'S PICKstar
Top