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STEVEN BONE and MARTIN WILSON suggest that the High Court has taken a narrow view with wide implications in a recent decision on industrial buildings allowances.
STEVEN BONE and MARTIN WILSON suggest that the High Court has taken a narrow view with wide implications in a recent decision on industrial buildings allowances.
THE RECENT DECISION of the High Court in Revenue and Customs Commissioners v Maco Door and Window Hardware (UK) Ltd [2006] All ER (D) 267 (Jul) overturned a Special Commissioner's decision by holding that a wholesaler's use of a building for 'storage' did not entitle it to claim industrial buildings allowances (IBAs). The storage concerned did not qualify as a 'part of its trade' for IBA purposes as its sole function was to support its wholesale trade — it was not a 'significant separate and identifiable' trading or commercial activity in itself.
This article discusses the court's decision and explains why it differed from the Special Commissioner's. It also considers the implications for other taxpayers and suggests a possible solution that may...
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