County Insurance Services Limited v The Commissioners for HMRC
Decision date: 24 November 2025
Neutral citation: [2025] UKFTT 1440 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
County Insurance Services Ltd appealed HMRC’s refusal to allow corporation tax deductions for amortisation of goodwill acquired on its 2013 incorporation, arguing the goodwill was created after 1 April 2002. The Tribunal considered whether the partnership’s pre-2002 business had ceased and been replaced by a new trade (notably after changes around 2006–07). It found the changes were an organic evolution rather than a cessation, so the business had been carried on before 1 April 2002 and the goodwill was treated as created before that date. The appeal was dismissed and HMRC’s contested assessments upheld (subject to the conceded/undisputed periods).
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The Tribunal applied the CTA 2009 s884 test as a factual inquiry whether the pre-2002 business ceased at an identifiable point on or after 1 April 2002; mere changes in personnel, premises, product mix, marketing or disposal of an arm do not establish cessation where they represent gradual or foreseeable evolution. The key evaluative exercise is distinguishing organic continuity from a sudden, dramatic change that would amount to a new trade.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal noted (obiter) that regulatory withdrawal of permission (e.g. FSA authorisation) can reflect disposal decisions rather than a fundamental change in business identity, and that continuous staff, turnover and absence of dramatic scale change are relevant indicators of continuity. These observations were presented as evaluative guidance rather than dispositive legal rules.