The Court of Appeal ruled on closure notices that had disallowed deductions in corporation tax. The deductions related to administrative matters in relation to derivatives contracts. The Court of Appeal agreed with the lower courts that these type of costs were not the same as losses affecting the value of the contracts and that therefore it was not correct to regard the costs as diminishing the overall value of the derivatives contracts and therefore no deductions were appropriate in relation to corporation tax.
Union Castle Mail Steamship Company
