[2003] EWCA Civ 1869, 20 December 2002. Respondent taxpayer (J) entered into a rent factoring scheme assigning rental income for five years to bank in return for lump sum. A special commissioner's decision that the payment was a capital receipt and not income for corporation tax purposes was upheld by the High Court (ChD 13 June 2001; WB3726-30) dismissing appeal by IRC. The IRC was allowed to appeal to the CA as to whether the payment was a capital and not an income receipt. The CA held that whether a payment was to be regarded as capital or income depended on the nature of the transactions and the factors involved. As the risk of non-payment of rent was transferred by the taxpayer company to the bank, the payment was to be treated as one of capital and not of income. Appeal dismissed. As at 27 May 2003, the Inland Revenue are seeking leave to appeal to HL (see also Abs66561).