Taxation logo taxation mission text

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

Capital and revenue in calculating profits

03 October 2017 / Andrew Hubbard
Issue: 4618 / Categories: Comment & Analysis

A matter of distinction


  • Capital and revenue costs were the subject of the first Readers’ Forum question.
  • The first reported tax case dealt with the same subject.
  • The need for profits to be computed in accordance with general accepted accounting practice.
  • The Atherton case and whether an asset is of enduring benefit.
  • Is there still a significant distinction between revenue and capital?

It is somehow fitting that the first readers’ query published in Taxation asked whether a profit was capital or revenue. That divide is of course one of the fundamental building blocks of our tax system and has always been the subject of keen debate and controversy. It is satisfying to note that just as Readers’ Forum started with a question about capital and revenue the first court decision in the official Reports...

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