Mars has sweet victory in Lords after tax battle
Confectioner and whisky distiller win joint battle over the depreciation of stocks
Mars, the confectioner, and whisky distillers William Grant & Sons
have won their battle against the taxman over the tax impact of the depreciation
of their stocks.
The
House
of Lords issued a unanimous judgment this morning in their favour.
The case concerns the depreciation of stock and problems resulting from a
Revenue ruling that such depreciation should be stripped out for tax purposes
every year rather than when the stock was sold.
Since whisky distillers often keep stocks for long periods, the move would
have cost the industry £30m, according to some estimates.
Simon Airey of DLA Piper
Rudnick described the Lords judgment as a ‘notable victory for the taxpayer’.
Further reading
Distillers
fight government on two fronts
Whisky
industry must swallow £30m tax hit