The First-tier Tribunal has handed down its Decision in FC Shipping Ltd v HMRC [2024] UKFTT 1013 (TC).
The case concerned ship leasing and the UK tonnage tax regime (Sch 22 Finance Act 2000). The issue was whether the taxpayers were entitled to capital allowances in respect of their capital expenditure on the acquisition of the ships (as the taxpayers contended) or whether allowances were to be denied because the leases had been de-risked applying Sch 22 para 90 (as HMRC contended).
The Tribunal dismissed the taxpayers’ appeals, holding that the leases had been de-risked with the result that capital allowances were not available.
Julian Ghosh KC and Harry Stratton appeared for the taxpayers.
Jonathan Bremner KC (leading Ben Elliott and Ed Hellier) appeared for HMRC.
A copy of the Decision can be found here.