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26 September 2011
Issue: 4323 / Categories: Tax cases , Business , Income Tax
G B Forbes (TC1278)

The taxpayer began a boat chartering business in 2001. A year later he decided to relocate the firm to Spain which he believed would offer better opportunities. He operated remotely leasing boats through an agency.

He included capital allowances in respect of a boat used in the chartering business for the years ended 5 April 2003 2004 2005 and 2006 and used them to offset losses against other income under TA 1988 s 380 for the respective years.

HMRC disputed the claim on the basis the taxpayer was in the business of bare boat leasing. Furthermore the taxpayer had a full-time job and the boat business was not his main occupation. The capital allowances should therefore be restricted.

The taxpayer appealed.

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