Formula 1 racing team McLaren has lost its claim, regarding a £32 million ($54.5 million) penalty fine imposed against it by the sport’s governing body, which it believed should be tax deductible in the UK.
The decision of the Upper Tribunal in London underlines the UK authorities’ view that most fines are not deductible against trading income.
Unlock this content.
The content you are trying to view is exclusive to our subscribers.
The new guidance is not meant to reflect a substantial change to UK law, but the requirement that tax advice is ‘likely to be correct’ imposes unrealistic expectations
China and a clutch of EU nations have voiced dissent after Estonia shot down the US side-by-side deal; in other news, HMRC has awarded companies contracts to help close the tax gap