Other cases that caught our eye: 8 October 2021

Wholly and exclusively incurred trading expenses

In D Cation v HMRC [2021] UKFTT 311 (TC) (4 September 2021) the FTT dismissed the taxpayer’s appeal finding that a statement in HMRC’s Business Income Manual (‘If you identify a non-trade purpose then the expenditure is not allowable’) did not in any way reverse the burden of proof so as to require HMRC to identify a non-trade purpose in order to disallow expenditure as not being incurred wholly and exclusively for the purposes of the trade. On the facts the burden of proving the payment (here made to the taxpayer’s father) was wholly and exclusively for the trade was not discharged so the deduction was not allowed.

Read the decision.

VAT repayment supplement

In Bollinway Properties Ltd v HMRC [2021] UKFTT 309 (TC) (2 September 2021) the FTT dismissed the taxpayer’s appeal finding that it was not owed a...

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