B & E Security Systems Ltd v Revenue & Customs [2010] UKFTT 146 (TC) (26 March 2010)

B & E Security Systems Ltd v Revenue & Customs [2010] UKFTT 146 (TC) (26 March 2010)

On the specific facts, the construction works to the control room were sufficiently linked to the installation of plant and machinery, required by contractual and regulatory demands, and not disproportionate in cost. Therefore, the expenditure qualifies as incidental alterations under section 25 of the Capital Allowances Act 2001.

Citation
[2010] UKFTT 146
Parties
Appellant: B & E Security Systems Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
26 March 2010
Procedural Posture
Tax Appeal / First Tier Tribunal Decision
Outcome
Appeal allowed
Legal Topics
Capital Allowances, Plant and Machinery, Alterations to Existing Buildings, Corporation Tax
Tax Law Corporate Law Capital Allowances Plant and Machinery Alterations to Existing Buildings Corporation Tax

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Parties

B & E Security Systems Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether expenditure on construction of a control room is qualifying expenditure on plant and machinery under Capital Allowances Act 2001 section 25
  2. 2 Whether such expenditure is incidental to the installation of plant and machinery

Ratio Decidendi

On the specific facts, the construction works to the control room were sufficiently linked to the installation of plant and machinery, required by contractual and regulatory demands, and not disproportionate in cost. Therefore, the expenditure qualifies as incidental alterations under section 25 of the Capital Allowances Act 2001.

Court Disposition

Appeal allowed

Orders

  • The sum of £61,173 represents incidental alteration costs within the scope of section 25 of the Capital Allowances Act 2001 and qualifies for capital allowances.
  • No order as to costs.