Watney Combe Reid & Co. Ltd. v Pike (H.M. Inspector of Taxes). Watneys London Ltd. v Pike (H.M. Inspector of Taxes).  BTC 288
Judgment delivered 28 July 1982.
Corporation tax – Deductible expenditure – Whether ex gratia payments wholly and exclusively expended for the purposes of taxpayer’s trade – Whether payments of capital or income nature – Income and Corporation Taxes Act 1970, sec. 130(a).
The taxpayer companies were regional operating subsidiaries of Watney, Mann & Truman Holdings Ltd. (‘Watney Mann’). The taxpayer companies owned on-licence premises occupied (1) by tied tenants (2) by companies in the same group as themselves (‘managed houses’).