House of Lords.

Lord Keith of Kinkel, Lord Emslie, Lord Templeman, Lord Goff of Chieveley and Lord Jauncey of Tullichettle.

Judgment delivered 14 May 1992.

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