Further study on
Protecting or defending an asset
The expenditure incurred for protecting or defending an
asset which is used for production of assessable profits is deductible.
In the case Morgan
versus Tate & Lyle Ltd. 35 TC 367, the company mounted an extensive propaganda
campaign intended to prevent nationalization of the whole of the company's
trade. The court ruled that the expenditure was for the purpose of the trade.
The judge commented that defending a profit earning asset, or all the company's
assets, came within the definition of for the purpose of the trade.