Court of Appeal (Civil Division).

[The appeal against this decision is reported at [1992] BTC 324.]

Fox, McCowan and Beldam L JJ.

Judgment delivered 27 March 1991.

Corporation tax – Capital or income payment – Injection of £50m into insolvent banking subsidiary by parent company as condition of purchase of subsidiary by Bank of England – Reason for payment stated to be to preserve taxpayer’s own trade – Whether capital or income payment – Whether £50m deductible in computing taxpayer’s profits.

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