The Court of Appeal has found decisively for HMRC in Centrica Overseas Holdings Ltd on the basis of the statutory disallowance for management expenses of a capital nature. Benjamin Wonnacott (Ropes & Gray) reviews the judgment and its implications.
In Atkinson v Camas PLC [2004] EWCA Civ 541 formerly the leading modern authority on the expenses of management of companies with investment business Carnwath LJ (as he then was) held that the classification of such expenses as revenue or capital was irrelevant:
‘Unless forced to do so I would be reluctant to assume that the legislature intended such an uncertain distinction to be introduced into the present debate. (I note in passing that the current Finance Bill apparently seeks to introduce such a distinction into [ICTA 1988s 75]. That may pose problems for the future…)’
Those problems have now materialised in...
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The Court of Appeal has found decisively for HMRC in Centrica Overseas Holdings Ltd on the basis of the statutory disallowance for management expenses of a capital nature. Benjamin Wonnacott (Ropes & Gray) reviews the judgment and its implications.
In Atkinson v Camas PLC [2004] EWCA Civ 541 formerly the leading modern authority on the expenses of management of companies with investment business Carnwath LJ (as he then was) held that the classification of such expenses as revenue or capital was irrelevant:
‘Unless forced to do so I would be reluctant to assume that the legislature intended such an uncertain distinction to be introduced into the present debate. (I note in passing that the current Finance Bill apparently seeks to introduce such a distinction into [ICTA 1988s 75]. That may pose problems for the future…)’
Those problems have now materialised in...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
