Gypsies — Injunctions — Correct approach of courts on application by local planning authority for injunction restraining breach of planning control — Whether proportionality to be considered — Section 187B of Town and Country Planning Act 1990 — Appeals dismissed
The Inland Revenue is asking the House of Lords for permission to challenge an Appeal Court decision over the rate of tax to be paid by John Lewis in respect of the sale of rental rights to its property.
The Revenue claims that the £25m-plus sale of the right to rent payments from certain John Lewis stores should be regarded as income receipt, rather than a capital receipt, entitling it to recover a higher percentage of tax from the property limb of the John Lewis partnership.
Last December, in a decision that could potentially cost the Revenue £700m in tax payments, the Appeal Court upheld a signpost High Court ruling in favour of John Lewis. The High Court found that John Lewis Properties plc should not pay top-rate tax with regard to the sale of the rental rights.
The Revenue is now seeking leave to challenge the earlier decision. However, Lord Nicholls, Lord Hope and Lord Walker have placed the matter on hold to give John Lewis an opportunity to object to the application.
Commissioners of Inland Revenue v John Lewis Properties plc
References: PLS News 27/5/03
