Supreme Court finds IFRS 2 debit is tax deductible

The Supreme Court has ruled that NCL Investments was able to deduct accounting debits from its corporate tax receipts as it was in accordance with IFRS 2

After almost 10 years in the court system, the Supreme Court agreed with the lower courts and dismissed HMRC’s appeal ruling that NCL Investments was able to claim deductions against the trading profits corresponding to accounting debits that appeared in their income statements, which related to the grant of share options to their employees.

NCL Investments was a wholly-owned subsidiary of Smith & Williamson Holdings Ltd (SWHL), and employed staff which they made available to other companies within the corporate group for a fee.

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