Gallagher v Jones

CA 1993 66 TC 77 [1993] STC 537 [1994] 2 WLR 160 [1994] CH 107

A business operated by two taxpayers of short term boat leasing.  The length of the lease were for 24 month periods, which included a large up front payment followed by 17 monthly instalments and the final 5 months being rent free.  After the initial 24 months, the boats could be leased for small annual fee for a 21 year period.  The taxpayers tried to claim for the whole of the costs incurred in the first period, i.e. the initial up front payment and the monthly costs.  

This was not in accordance with generally accepted principles of commercial accountancy, if a trading expenditure was incurred in a period does not necessarily mean it related to that period