Case Law

Excessive service charges were held not to be allowable as managements expenses in Fragmap Developments v Cooper 44 TC 366.

“The making of investments” did not require the “turning over” of investments. CIR v Tyre Investment Trust Ltd 1924 12 TC 646.

A company formed to acquire, develop and manage a large estate was not an “investment company” in Howth Estate Co v Davis 1934 21 TC 74.

Expenses of a property owning company in advertising for tenants were held to be an expense of management in Southern v Aldwych Property Trust Ltd 1940 23 TC 707.

In Casey v Monteagle estate Co v Davis 1962 3 ITC 313 a company formed to acquire an estate in land was also held not to be an “investment company”.

In the UK case Cook v Medway Housing Society Ltd 1997 STC 90, the society which made an investment in houses which it rented below market value, was held to be an investment company.

Due diligence costs incurred by a company in relation to a proposed investment acquisition were not management expenses. Hibernian Insurance Company Ltd v MacUimis 2000 V ITR 495

This case considered whether the development of property constituted a trade (or revenue in nature) or an investment (or capital transaction) Revenue Commissioners v O'Farrell [2018] IEHC 171