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Capital Allowances Tax Tribunal Case Summary 2019

Updated: Jul 5, 2020

Case law and tribunal decisions are how statutory interpretation evolves. It can reinforce long term views and sometimes challenge the settled status quo. It plays an essential role in informing all capital allowances advice and a summary of the most topical capital allowances tribunal decisions are summarised below.

Grain silo and building facility tax win

10 January 2019

In the recent case of (1) STEPHEN MAY (2) STEPHEN MAY AND G MAY T/A S.C. MAY and THE COMMISSIONERS FOR HER MAJESTY’S REVENUE & CUSTOMS [2019] UKFTT 0032 (TC), the whole cost of a new grain facility was accepted as plant in its entirety. Had the claim failed, the taxpayer would have only been allowed to claim around 20% as eligible for plant and machinery allowances.

A copy of our article can be found here.

Residential care home win on building purchase

28 January 2019

A residential care homeowner succeeds in claiming plant and machinery allowances on over 14% of its property purchase in 2011 and overturns a hardened stance commonly used by HM Revenue & Customs (“HMRC”) at that time.

A copy of our article can be found here.

BPRA case explores “on or in connection with”

28 March 2019

If you have ever had to negotiate a claim for Business Premises Renovation Allowances (“BPRA”) with HM Revenue & Customs the recent case of London Luton Hotel BPRA Property Fund LLP (“the LLP”) v The Commissioners for Her Majesty’s Revenue & Customs (“HMRC”) [2019] UKFTT 0212 (TC) provides a useful commentary on the boundaries of qualifying expenditure; and specifically what the legislation means by “on or in connection with the conversion, renovation or repair”.

A copy of our article can be found here.

Eurocentral investors lose out on capital allowances

26 April 2019

Some of the original investors in Eurocentral are set to lose around £5million arising from the recent case of MARK SHAW v THE COMMISSIONERS FOR HER MAJESTY’S REVENUE & CUSTOMS [2019] UKFTT 280 (TC).

A copy of our article can be found here.

HMRC loses challenge on late capital allowances claim

2 July 2019

The recent case of HM Revenue & Customs (“HMRC”) v Dundas Heritable Ltd [2019] UKUT 0208 (TCC) reinforces the fact that a claim for capital allowances may be made, amended or withdrawn at any time up to whichever is the last of the following dates: –

A copy of our article can be found here.

Specialist building parts in uranium facility fail ‘plant’ test?

7 August 2019

Despite the complexity needed to operate a depleted uranium hexafluoride treatment facility; and specifically, the specialist building parts needed. The taxpayer lost its £192m claim for capital allowances on some key elements.

A copy of our article can be found here.

HMO fails to substantiate capital allowances claim

24 September 2019

In the case of Tevfik v Revenue and Customs Commissioners [2019] UKFTT 600(TC), the taxpayer lost their capital allowances claim for a House in Multiple Occupation (HMO) when they couldn’t substantiate the claim basis under enquiry.

A copy of our article can be found here.

SSE win hydro tax case on structures as plant

4 November 2019

SSE Generation Limited (“SSE”) has successfully challenged last year’s First Tier Tribunal decision which rejected large parts of SSE’s capital allowances claim for its £300 million hydroelectric power generation scheme at Glendoe, near Loch Ness in Scotland.

A copy of our article can be found here.

Golden Contract Data Centre in Tax Tribunal

15 November 2019

The case of Cobalt Data Centre v HMRC [2019] UKUT 0342 (TCC) concerns the availability of 100% enterprise zone allowances through the use of a “Golden Contract” for the

creation of data centres at the former Siemens and Atmel semiconductor facility at Newcastle’s Cobalt Park.

A copy of the article can be found here.

If you would like further details on aspect of the above, please do not hesitate to get in touch.


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