A2 60532 Blue Peter

Should she be allowed to get away with 80...?

 

I'm far from an accountant (come back @Bean-counter we need you) but is there any way that for instance a loss making company within a wider ownership group can uses those losses to balance the tax liabilities of a profit making business in the wider group?

Who knows 60532 is back which is a good thing!

 

This was the tax dodge used to lease class 50s to British Rail when the class was first introduced but the scheme was a loophole that was closed by Chancellor Callaghan in 1969 IIRC.

 

It depends is the short answer. But it is certainly possible if the tax rules are followed and the companies are part of a group.

https://www.gov.uk/hmrc-internal-manuals/company-taxation-manual/ctm80105Autocorrect

Gives you chapter and verse.

 

The class 50 were leased from the manufacturers. This is not the same as group loss relief.

 

Over 80 pictures taken by Jack Boskett, have been uploaded to an album for Blue Peter's rededication ceremony on Locomotive Services Group's Facebook page.

One of them is of a memorial plaque dedicated to Geoff Drury inside the loco's cab, which is a lovely touch.

 

A small example of the attention to detail which I'm sure extends to the whole loco; the slots on the four screws attaching the plaque are perfectly aligned. Great to see

 

Off subject but unfortunately there are fraudulent ways of obtaining tax refunds on corporate tax that was never paid, HMRC pay out automatically and the transaction gets to the Cayman in an instant.

 

IIRC a new company [English Electric Leasings] was created to buy the locomotives from English Electric and lease the fleet to BR at terms that were virtually guaranteed to make a loss. That loss was then split by the companies which created the leasing company( English Electric, Hunslet and Rolls Royce IIRC) and each offset the loss against their profit from their individual companies. I understand the locomotives were bought from English Electric Leasings on transfer to the Western Region but the tax loophole of setting the loss against individual company profits was closed in a Callaghan budget in the late 1960s / early 1970s

 

The leasing of the locomotives allowed EE to claim the capital allowances that would have been of no benefit to BR, as BR had no taxable profits to offset against the capital allowances.

This is very different from what is being discussed here which is the offsetting of losses by one group company against the profits of another group company.

Making legitimate losses in one company to reduce your tax bill in another company is only a good idea if you are making those losses through something you see as beneficial.

A loss of £100 will only reduce your tax bill by £25, leaving you £75 worse off.

 

I recognise that location - I was at the other end of the bridge!

 

Superb to see.
A working line up of an A1, A2, A3 and A4 will be a sight to see with BP, Tornado, Scotsman and SNG should it happen.

 

Yes, and lets have them all blue....

 

Oh, that would be rather splendid even if one of them was in a livery it never wore!

 

It has now...

 

There's an interesting post on the LSG Facebook page regarding the origins of 60532's chime whistle, which is a New Zealand 5 chime whistle. There's also a bit about how it initially operated and what LSL have now done to operate it, with a assistance from drawings from the Australian Pacific 3801 in Australia.

 

I didn't know we had a separate thread for "Blue Peter".

60532 "Blue Peter", 13/07/24.