Commentary

B1.410 Source of finance

Business tax
Business tax | Commentary

B1.410 Source of finance

Business tax | Commentary

B1.410 Source of finance

It may be that the financing of the purchase of an asset indicates an intention to sell on quickly rather than retain it as an investment. For instance, the asset could be purchased by means of a loan at a rate of interest that is unsustainable in the long term1.

This was an important factor in Wisdom v Chamberlain2. Mr Wisdom's adviser, being concerned in 1961 with the possibility of a devaluation of the pound and the effect which that might have on the taxpayer's assets, decided to take steps to find a hedge against devaluation. He

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