A company made a special pension contribution of £186,200 to an approved pension scheme and claimed a deduction for corporation tax purposes in the year of payment. The Inland Revenue issued a direction under ICTA 1988, s592(6) that the tax relief on the contributions should be spread over five years. The company appealed against the assessment and the appeal was upheld by the Commissioners.
The decision was overturned in the Chancery Division and it was held that the Revenue had been entitled to exercise its discretion under ICTA 1988, s592(6) and that the Commissioners did not have the power to amend that decision.