JRO Griffiths Ltd v Revenue & Customs (capital allowances - whether warehouse to store potatoes for crisp manufacture is plant) [2021] UKFTT 257 (TC) (12 July 2021)

Parties

Procedural Posture

Tax Appeal / First Tier Tribunal Decision

Legal Issues

1. 1 Whether the potato storage facility qualifies as plant for capital allowances under section 11 of the Capital Allowances Act 2001
2. 2 Whether the facility is excluded as a building or structure under sections 21 and 22 unless it falls within List C exceptions (cold store or silo for temporary storage)

Ratio Decidendi

The potato storage facility qualifies as plant under section 11(4)(a) of the Capital Allowances Act 2001 because it performs active functions integral to the appellant's business, not merely serving as premises. As a building or structure, it is excluded unless it falls within List C exceptions; the facility meets the ordinary meaning of 'silo for temporary storage' and 'cold store', thus qualifying for capital allowances.

Court Disposition

Appeal allowed

Orders

• Expenditure incurred by the appellant on the potato storage facility qualifies for plant and machinery capital allowances under section 11(4)(a) and List C of the Capital Allowances Act 2001.
• HMRC's disallowance of capital allowances is overturned.