In Jamie White v HMRC (TC03186 – 6 January 2014) Mr White appealed against HMRC’s refusal to give relief for bad debts owed by his father’s company M White Ltd to Mr White and his skip businesses.
Distinguishing Reid Brewery Co v Male (3 TC 279 [1891] QB 1) the tribunal noted that in Reid the brewery advanced monies to its customers to encourage them to continue to buy their alcohol from the brewery. The payments made by Mr White were different in that they were not necessary for the purposes of his skip businesses.
Consequently agreeing with HMRC the tribunal found that the loans should be treated as capital as Mr White was not carrying on the business of a moneylender or a bank and therefore the loans were not used wholly and exclusively for the purposes of Mr...
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In Jamie White v HMRC (TC03186 – 6 January 2014) Mr White appealed against HMRC’s refusal to give relief for bad debts owed by his father’s company M White Ltd to Mr White and his skip businesses.
Distinguishing Reid Brewery Co v Male (3 TC 279 [1891] QB 1) the tribunal noted that in Reid the brewery advanced monies to its customers to encourage them to continue to buy their alcohol from the brewery. The payments made by Mr White were different in that they were not necessary for the purposes of his skip businesses.
Consequently agreeing with HMRC the tribunal found that the loans should be treated as capital as Mr White was not carrying on the business of a moneylender or a bank and therefore the loans were not used wholly and exclusively for the purposes of Mr...
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