In Aeroassistance Logistics Ltd v HMRC (TC02628 – 9 April) a UK company invited some of its clients to attend a powerboat grand prix in Tunisia. It claimed a deduction for the cost of this. HMRC issued an assessment disallowing the claim on the basis that the expenditure constituted ‘business entertainment’. The First-tier Tribunal (FTT) dismissed the company’s appeal against the assessment.
Why it matters: Inviting clients to a powerboat grand prix was within the definition of ‘business entertainment’ so that the effect of CTA 2009 ss 1298–1300 was that it was not allowable as a deduction.
