Turners (Soham) v HMRC

In Turners (Soham) v HMRC [2019] UKFTT 131 (26 February 2019) the FTT found that expenditure incurred on tractors and other equipment was not deductible under CTA 2009 s 68 and identified the ‘practice generally prevailing at the time’.

In its corporation tax computations for the years ending 31 December 2009 2010 and 2013 Turners had deducted expenditure it had incurred on the replacement of tractor units and trailers used in its haulage trade. The first issue was whether these deductions were authorised by CTA 2009 s 68 (and its predecessor ICTA 1988 s 74(1)(d)). Referring to Burnley [1980] STC 45 and agreeing with HMRC the FTT found that the provision operated negatively to limit the deduction rather than to provide for one. The FTT explained that: ‘What is not prohibited by a particular subparagraph of subsection (1) may be deductible but it is not made...