Eligibility of a silo built to store grain before sale

The taxpayer produced grain to sell to local farms and feed mills. He built a facility for drying conditioning and storing the grain. He claimed plant and machinery capital allowances on the basis the facility was a ‘silo provided for temporary storage’ within the meaning of CAA 2001 s 23 list C.

HMRC allowed 20% of the claim saying the structure was a building rather than a silo. While some items in the facility were eligible the building was not.

The taxpayer appealed.

The First-tier Tribunal considered the meaning of ‘silo’ and concluded the Shorter Oxford English Dictionary definition would include a structure built to store grain. It found that the facility had been ‘specifically built’ to dry and maintain the grain as well as store it before sale. The building was therefore a silo.

The tribunal then had to decide whether the silo was used for temporary storage. HMRC argued...