Business expense claim denied

The Upper Tribunal has upheld the FFT decision in Interfish Ltd.

In October 2012 we reported on three cases concerning the deductibility of business expenses. The Upper Tribunal has now heard the taxpayer’s appeal in Interfish Ltd v Revenue and Customs Commissioners [2013] UKUT 0336 (TCC) and has supported the FTT decision that certain payments made by Interfish to Plymouth Albion Rugby Club should not be deductible.

The Upper Tribunal concluded that:

The judge had made a clear finding that C and therefore the taxpayer’s subjective intentions had included improving the club’s position.  It was a finding that had been plainly open to the FTT to make on the evidence.  C’s conscious purpose of improving the club’s financial position had been so that the taxpayer’s commercial interests would be furthered in consequence.  Both purposes had been in view and therefore the payments had not been wholly and exclusively for the purposes of the taxpayer’s trade (see [42]-[44], [46] of the judgment).

For more information in relation to this case and the deductibility of expenditure please contact the TaxDesk on 0845 4900 509 and ask for Martin Mann.