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New for old
KEY POINTS
- Tractor units trailers and tankers were shown as fixed assets in company accounts.
- The business also claimed the full costs of such assets as a tax deduction.
- The statutory renewals basis could not apply to costs not shown as a deduction in accounts.
- The original 2008 corporation tax liability was calculated in accordance with the practice generally prevailing at the time.
- The renewals basis had been withdrawn due in part to perceived abuse of the rules.
- On the basis of ordinary English usage the tractor units tankers and trailers could not be described as ‘implements utensils and articles’.
In transport and farming businesses there has been much debate on the definition of tractors and equipment and their correct accounting and tax treatment. The recent First-tier Tribunal (FTT) case of Turners (Soham) Ltd (TC6997) showed the need for accounts and tax teams to work together. It was decided...
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