Church qualifies

The taxpayer was a property leasing company which claimed business premises renovation allowance in respect of the conversion of a derelict church to create a restaurant.

HMRC refused the claim on the basis the church was not a qualifying building because it had not been used for the purposes of a trade profession or vocation (CAA 2001 s 360C).

The company appealed.

The First-tier Tribunal likened the church to the limited company of naval architects in William Esplen Son and Swainston Ltd v CIR a 1919 King’s Bench Division case in which the taxpayer was not carrying on a profession but it was carrying on a trade or business.

The church in the instant case was “conducted on commercial principles and constituted a trade” when the constitution and other intentions were taken into consideration.

Also the vestry was used as...