Home Information Cases Ingenious Games & Inside Track Productions & Ingenious Film Partners v Revenue & Customs Commissioners (2017)

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Ingenious Games & Inside Track Productions & Ingenious Film Partners v Revenue & Customs Commissioners (2017)

Summary

A sum paid by a business to acquire the rights to receive future income from the distribution of a film was capital expenditure and was not deductible in computing the business' taxable profits, due to the Income Tax (Trading and Other Income) Act 2005 s.33. Although the majority of the income was expected to be generated within five years, the film rights had a life of over five years and that factor weighed heavily in suggesting that they were of a capital nature.

Facts

Held

Judgment accordingly

First Tier Tribunal
Judge Charles Hellier, Julian Stafford
Judgment date
17 May 2017
References