Tubbs (Elastics) Limited v Whitehead (H.M. Inspector of Taxes). 1983 BTC 406
Court of Appeal.
Judgment delivered 8 November 1983.
Corporation tax – Whether expenditure of capital or revenue nature – Payment made to secure modification of restrictive terms associated with loan arrangement – Whether payment secured any asset of an enduring nature – Income and Corporation Taxes Act 1970, sec. 130(f).
This was an appeal by the taxpayer company from the finding of Vinelott J. (reported at  BTC 28) that a payment of £20,000 was of a capital nature, securing enduring advantages to the company and freeing a large amount of the company’s property from fixed and floating charges over it.