THE WAKELYN TRUST V HMRC [2022] TC/2019/01108/V

This was an appeal to the FTT over whether the release of a tenant’s reinstatement obligation contained in a lease formed deductible expenditure of the lessor for the purpose of section 38(1)(b) Taxation of Chargeable Gains Act 1992. Patrick Cannon represented the taxpayer trust in this appeal and the decision contains some helpful remarks about the cautiously restrictive terms of section 38 and that not all forms of expenditure which a businessman might think should be taken into account are in fact permitted ductions.

You can read the full decision here