The obtaining of writing down allowances at 25% was held to be a main object, or one of the main objects, of transactions involving the purchase of two ships.
The appellant company claimed writing down capital allowances in respect of expenditure incurred on the purchase of two ships. HM Revenue and Customs (HMRC) challenged the claim and adjusted the company’s corporation tax return for its 2006 accounting period to recover the allowances claimed. The company appealed.
The appellant’s original appeal to the First-tier Tribunal (FTT) ([2012] UKFTT 47(TC)) was successful. HMRC appealed, but the FTT’s decision was upheld in the Upper Tribunal ([2013] UKUT 368 (TCC)). The Court of Appeal ([2014] EWCA Civ 1062) subsequently allowed HMRC’s appeal on one of the issues by setting aside the FTT’s decision, and remitted the appeal back to the FTT to reconsider their conclusions.
The
