Case law is important in determining the nature of the receipt and whether it is a capital or revenue receipt. The following commentary summarises important cases in this area and whether the receipt was treated as capital or revenue. For details of cases relevant to capital or revenue expenditure see B2.304 onwards.
Amounts treated as capital receipts
The following have been held to be capital receipts:
- Ìý
•ÌýÌýÌýÌý compensation received by a fireclay company from a railway company for leaving part of the fireclay unworked1
- Ìý
•ÌýÌýÌýÌý annual sums were paid under to a company to reimburse capital outlay to enable the company to supply its surplus water at a fixed price to a local authority2
- Ìý
•ÌýÌýÌýÌý sum received on cancellation of the company's future rights under comprehensive agreements for sharing profits3
- Ìý
•ÌýÌýÌýÌý sums received from traders for the installation of plant for carrying out the company's patented process for renovating motor tyres, the company agreeing not to introduce another plant, or canvass for orders,
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