Vaines v Revenue & Customs [2013] UKFTT 576 (TC) (15 October 2013)

Vaines v Revenue & Customs [2013] UKFTT 576 (TC) (15 October 2013)

The payment of €300,000 by Mr Vaines to Bayerische Landesbank was incurred wholly and exclusively for the purposes of his trade, was revenue expenditure, and is therefore deductible under s 34 ITTOIA 2005.

Citation
[2013] UKFTT 576
Parties
Appellant: Peter Vaines; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
15 October 2013
Procedural Posture
Tax Appeal / First Tier Tribunal Decision
Outcome
Appeal allowed
Legal Topics
Income Tax, Partnerships, Deductibility of Expenses, Capital Vs Revenue Expenditure
Tax Law Income Tax Partnerships Deductibility of Expenses Capital Vs Revenue Expenditure

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Parties

Peter Vaines

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether the payment of €300,000 (£215,455) to settle German litigation was an expense incurred wholly and exclusively for the purposes of the trade or profession of an individual partner
  2. 2 Whether the payment was revenue or capital expenditure
  3. 3 Whether the payment was deductible under s 34 Income Tax (Trading and Other Income) Act 2005

Ratio Decidendi

The payment of €300,000 by Mr Vaines to Bayerische Landesbank was incurred wholly and exclusively for the purposes of his trade, was revenue expenditure, and is therefore deductible under s 34 ITTOIA 2005.

Court Disposition

Appeal allowed

Orders

  • The closure notice is set aside and the deduction of £215,455 is allowed.