Expenditure on construction of a tails management facility

Urenco Chemplants built a tails management facility at a nuclear site and claimed capital allowances on the capital expenditure. HMRC decided that £192m did not qualify. So the company appealed.

The First-tier Tribunal e considered whether the assets functioned as plant whether any expenditure was on the provision of a building and if so whether the items fell within CAA 2001 s 23 list C items 1 and 4. He concluded that the kiln facility and the condenser facility functioned as plant as did some separately identified assets. However the other structures were the setting in which the trade was carried on rather than apparatus with which the trade was carried on so were not plant.

Many of the assets provided safety functions and although the business processes could in theory be carried out without the safety structures this would not meet...