Licensing Costs Classed as Capital Charge
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MEMBERS of the Road Haulage Association have been recommended to resist any attempt by inspectors of taxes to classify as a capital charge legal costs incurred in renewing carriers' licences. In the past they have been admitted as revenue charges to be set against income tax.
Some time ago the High Court ruled in the Annis case that the cost of securing an additional licence was a capital charge. The R.H.A. claim that the circumstances of the Annis case were peculiar and that the court's ruling cannot be used in other applications for additional licences, and certainly not in renewals.
The Association are seeking an opportunity to test the application of the Annis decision to other cases.
It is understood that licensing costs of bus companies are still allowed as revenue charges.