[2025] UKUT 00164 (TCC) Nellsar Limited v The Commissioners for His Majesty's Revenue and Customs
Upper Tribunal Tax and Chancery decision of Mr Justice Mellor and Judge Brannan on 2 June 2025
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CORPORATION TAX –relief for amortisation of goodwill – Schedule 29 Finance Act 2002 & Part 8 Corporation Tax Act 2009 – purchase of care home businesses including properties – allocation of purchase price to goodwill (available for subsequent amortisation with corresponding corporation tax debits) and underlying real property– UK GAAP – Financial Reporting Standards 6 & 7 – RICS “Red Book” valuation principles – goodwill amounts dependent on property valuations – FTT concluded the properties should be fair valued under UK GAAP using market value rather than depreciated replacement cost – whether FTT’s conclusion open to it on the evidence – Edwards v Bairstow Stamp Duty Land Tax – just and reasonable apportionment of price paid for properties and for goodwill – paragraph 4, Schedule 4 Finance Act 2003