Irish Tax Institute - TaxFind

CORPORATION TAX – Capital allowances – s11 Capital Allowances Act 2001 – expenditure incurred on studies relating to the design and construction of offshore windfarms and their component parts including wind turbines and electrical cables – are the windfarms single items of plant – yes – in the alternative the wind turbines and electrical cables are single items of plant – was the expenditure on the studies incurred on the provision of such plant – yes in some cases but no in others – to the extent that it was not so incurred, could it be treated as pre- trading revenue expenditure and deductible under section 61 Corporation Tax Act 2009 – no – in light of the wording of the closure notices and the consequential amendments to the appellants returns, did they have to prove those items of expenditure – yes – were the amounts of qualifying expenditure set out in the appellants returns "finally determined" for the purposes of paragraph 88 of Schedule 18 to the Finance Act 1998 – no – appeal allowed in part

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Corporation Tax – whether “redress payments” made pursuant to settlement with regulator were non-deductible penalties (McKnight), whether wholly and exclusively incurred for the purposes of the trade, whether any deductible as Charitable Donations under s 189 CTA 2010

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Tax Cases and Appeals Crown Copyright

2022-03-23

Supreme Court (SC) rejected HMRC's appeal and determined that accounting debits which arose in the accounts of the taxpayer companies as a result of the grant of share options in the ultimate holding company were deductible in computing the trading profits

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The issue on this appeal is whether the taxpayers are entitled to capital allowances in respect of the expenditure incurred on the introduction of water into salt bearing rock so as to dissolve the rock and create an impervious cavity, typically in the shape of a teardrop (“leaching”), and the displacement of the resulting brine by the introduction of gas (“de-brining”) so as to permit the storage of gas in the cavity

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Tax Cases and Appeals Crown Copyright

2022-02-17

Claims for losses in two partnership tax returns of an LLP – whether the LLP was carrying on a trade – no, because, properly construed, the LLP’s activities amounted to investment and not trading – whether the LLP had a view to profit – no, because the LLP was indifferent as to whether or not it made a profit – whether the accounts of the LLP in its first period of account were prepared in accordance with GAAP – no, because the accounts did not properly record the substance of the relevant transaction – whether, assuming that the LLP was carrying on a trade and the accounts were prepared in accordance with GAAP, the losses shown in those accounts would have been deductible as a trading expense – no, because, even on the assumption that the LLP was trading, the expense in question would not have been wholly and exclusively incurred for trading purposes and would have been capital in nature – whether, on the assumption that the LLP was trading, certain expenses incurred in a later period of account in which a loss arose would have been deductible as trading expenses – certain of those expenses were deductible but others were not because they had not been wholly and exclusively incurred for trading purposes and the fact that they were not deductible meant that no loss would have arisen in the later period of account - appeal dismissed

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Tax Cases and Appeals Crown Copyright

2022-02-11

Whether preconditions to the making of a discovery assessment were satisfied

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Tax Cases and Appeals Crown Copyright

2022-02-03

INCOME TAX AND CORPORATION TAX – disposal of a business to a group company – ascertaining market value – intangibles relief – whether payment was a distribution – substitution of market value under Schedule 29 FA 2002 - held – valuation of assets actually transferred was £1 – no chargeable gain realised on disposal – no distribution – market value required to be substituted for purposes of intangibles relief – appeal of first appellant allowed – appeal of second appellant dismissed

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Tax Cases and Appeals Crown Copyright

2022-01-31

CAPITAL GAINS TAX – agreement for grant of lease on payment of premium – taxpayer paid deposit at time of contract as part payment of premium due on completion – taxpayer defaulted on next stage payment of premium and so contract rescinded – was the lost deposit allowable loss? – Hardy (Upper Tribunal), Lloyd-Webber (First-tier Tribunal) and Underwood (Court of Appeal) considered – Held: the Tribunal was bound by the decision of the Upper Tribunal in Hardy – appeal dismissed

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Corporation tax: R&D tax credits – HMRC guidance – appeal against amendment to claim on grounds of fairness and unreasonableness on the part of HMRC

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Tax Cases and Appeals Crown Copyright

2022-01-17

CAPITAL GAINS TAX – whether release of obligation contained in lease deductible expenditure for the purpose of s 38 (1)(b) TCGA – no qualifying expenditure – appeal dismissed

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