Contract Modification

Table of Contents


Tucker v. Granada Motorway Services Ltd. (1979), 53 TC 92 (HL)

The taxpayer was obligated under its lease from the Department of the Environment to pay additional rent calculated on the base of its gross takings from business conducted at the leased premises, including tobacco duty. In concluding that a lump sum paid by the taxpayer in order to have the amount of tobacco duty excluded from gross takings for this purpose was a capital expenditure, Lord Wilberforce indicated (at p. 108) that this was "a case of once for all expenditure on a capital asset designed to make it more advantageous".