Commentary

B2.323 Expenditure incurred in a capacity other than trader

Business tax
Business tax | Commentary

B2.323 Expenditure incurred in a capacity other than trader

Business tax | Commentary

B2.323 Expenditure incurred in a capacity other than trader

It is not enough, that the expenditure is incurred merely because the trade is being carried on and that it can be shown that it would not have been incurred otherwise. If the expenditure falls upon a person in a capacity other than as a trader, no deduction is available.

In Strong & Co Ltd1 damages payable to a hotel guest for injury he sustained while in the hotel were held to be expenses unconnected with the trade and, therefore, non-deductible. The expense was incurred not in the company's capacity as an innkeeper but as the occupier of the property in question. Lord

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