In Peninsular & Oriental Steam Navigation Company v HMRC (TC02725 – 11 June) a company (P) claimed credit for double tax relief of £21 103 383 in its return for the year ending 31 December 2004. HMRC issued a notice of amendment restricting the credit to the underlying tax which had actually been paid (£7m). P appealed contending that the effect of ICTA 1988 s 801(4B) was that it should also be entitled to credit for the balance of £14m. The First-tier Tribunal rejected this contention and dismissed P’s appeal. Sir Stephen Oliver held that P’s claim was ‘unsound in law having regard to the strict wording of the computational rules’. Its claim was based on ‘tax that has never been payable’ and was ‘completely at odds with’ the provisions of ICTA 1988 Part XVIII Chapter 1 which granted relief in respect of tax payable.
He also...
