Altrad Services Ltd & Anor v Commissioners for His Majesty's Revenue and Customs [2023] EWCA Civ 474 (03 May 2023)

Altrad Services Ltd & Anor v Commissioners for His Majesty's Revenue and Customs [2023] EWCA Civ 474 (03 May 2023)

Ground 2 is a new ground of appeal not previously raised before the FTT or UT. However, permission is granted for HMRC to argue Ground 2 before the Court of Appeal, on the condition that the Court will assume in the Taxpayers' favour that their subjective intention in paying the Option Price was to reacquire the assets for use in their businesses. There is no real prejudice to the Taxpayers in allowing the point to be argued as a matter of law, provided this assumption is made.

Citation
[2023] EWCA Civ 474
Parties
Appellant/respondent: Altrad Services Limited (Formerly Cape Industrial Services Limited); Appellant/respondent: Robert Wiseman and Sons Limited; Appellant/respondent: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
03 May 2023
Procedural Posture
Civil Appeal / Permission to Appeal (ground 2) in the Court of Appeal
Outcome
Permission to appeal on Ground 2 granted to HMRC, subject to conditions.
Legal Topics
Capital Allowances, Tax Avoidance, Appeals Procedure, New Points on Appeal
Tax Law Capital Allowances Tax Avoidance Appeals Procedure New Points on Appeal

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Parties

Altrad Services Limited (Formerly Cape Industrial Services Limited)

Appellant/respondent

Robert Wiseman and Sons Limited

Appellant/respondent

The Commissioners for His Majesty's Revenue and Customs

Appellant/respondent

Procedural Posture

Civil Appeal / Permission to Appeal (ground 2) in the Court of Appeal

Legal Issues

  1. 1 Whether HMRC should be granted permission to argue a new ground of appeal (Ground 2) regarding section 11(4)(a) of the Capital Allowances Act 2001
  2. 2 Whether the Option Price paid by the Taxpayers constituted 'qualifying expenditure' for capital allowances purposes under section 11(4)(a) CAA 2001

Ratio Decidendi

Ground 2 is a new ground of appeal not previously raised before the FTT or UT. However, permission is granted for HMRC to argue Ground 2 before the Court of Appeal, on the condition that the Court will assume in the Taxpayers' favour that their subjective intention in paying the Option Price was to reacquire the assets for use in their businesses. There is no real prejudice to the Taxpayers in allowing the point to be argued as a matter of law, provided this assumption is made.

Court Disposition

Permission to appeal on Ground 2 granted to HMRC, subject to conditions.

Orders

  • HMRC granted permission to argue Ground 2 on the basis that the Court will assume the Taxpayers' subjective intention in paying the Option Price was to reacquire the assets for use in their businesses.
  • Matter reserved to Lord Justice Newey and Lady Justice Whipple for substantive hearing.