Revenue and Customs Commissioners v Investec Asset Finance plc and another

Corporation tax – . The tax payer companies had successfully appealed against the conclusions and amendments made to their corporation tax returns contained in closure notices issued by the Revenue and Customs Commissioners (HMRC). On appeal by HMRC, the Upper Tribunal (Tax Chamber) held, among other things, that the disputed expenditure had not been incurred solely for the purpose of the taxpayers' financial trade, as required by s 74(1)(a) of the Income Tax and Corporation Taxes Act 1988 and s 54(1) of the Corporation Taxes Act 2009, and therefore part of that expenditure should be disallowed. Consequently, the First-tier Tribunal (Tax Chamber) had erred in relation to that issue and HMRC's appeal in relation to that issue would be allowed in part.

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