Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Poor investment

09 March 2015
Issue: 4492 / Categories: Tax cases , Business , Capital allowances

Terrace Hill (Berkeley) Ltd (TC4282)

The taxpayer was a special purpose company formed to hold the Terrace Hill group’s 50% interest in a development of an office property in Mayfair.

The construction was completed in 2003 and the building was let to several tenants before being sold in 2005.

The company said its profits on the sale were capital profits covered by losses eligible for surrender by group relief.

The chairman of the group explained it retained properties where good rental growth was anticipated to maintain a steady income. The aim had been to keep the development in question but it was sold because the offer had been too good to turn down particularly given rental growth was looking less attractive than originally envisaged.

HMRC rejected the claim saying the company had held its interest in the property as a trading asset rather than as an investment and had...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon