Damages are taxable profits

Damages are taxable profits - 1987 - Times 20/6/87 p40 .

In Donald Fisher (Ealing) Ltd v Spencer (Inspector of Taxes) , ChD 11 June 1987, the taxpayer company received 14,000 in settlement of a claim against its negligent estate agent who had failed to serve a counternotice objecting to a rent review clause, resulting in increased rent. ChD held that the payment was a trading receipt taxable under Sch D, Case 1.


CORPORATION TAX
NEGLIGENCE