In Market South West (Holdings) Ltd v HMRC (Upper Tribunal – 11 May) a company (M) operated an indoor market at a site in Cornwall. The relevant planning permission only allowed it to trade at weekends. M applied for planning permission to allow it to trade on weekdays.
The council granted planning permission to trade on ten weekdays. M subsequently breached the terms of this permission by trading from the site each Wednesday. The council issued an enforcement notice against which M appealed.
The QB dismissed this appeal. In its tax return M claimed a deduction for the legal and professional fees incurred in applying for planning permission and in appealing against the enforcement notice issued by the council. HMRC issued an amendment disallowing the deduction on the basis that this was capital expenditure. M appealed.
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In Market South West (Holdings) Ltd v HMRC (Upper Tribunal – 11 May) a company (M) operated an indoor market at a site in Cornwall. The relevant planning permission only allowed it to trade at weekends. M applied for planning permission to allow it to trade on weekdays.
The council granted planning permission to trade on ten weekdays. M subsequently breached the terms of this permission by trading from the site each Wednesday. The council issued an enforcement notice against which M appealed.
The QB dismissed this appeal. In its tax return M claimed a deduction for the legal and professional fees incurred in applying for planning permission and in appealing against the enforcement notice issued by the council. HMRC issued an amendment disallowing the deduction on the basis that this was capital expenditure. M appealed.
...
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