The Mersey Docks and Harbour Company Limited v The Commissioners for HMRC

Decision date: 23 December 2024

Neutral citation: [2024] UKFTT 1163 (TC)

Overall AI summary confidence: medium

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Short overview

This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.

AI confidence in this short overview: medium

Mersey Docks claimed capital allowances for £57,134,538 spent building the Liverpool2 Quay Wall; HMRC issued closure notices denying plant & machinery allowances. The Tribunal found the Quay Wall to be a distinct asset, that the expenditure was expenditure "on the provision of plant or machinery" within CAA 2001 s.11(4), and that the expenditure is saved from the List B exclusion by List C item 1, so allowances are available; the appeal was allowed.

Ratio decidendi

This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.

AI confidence in this ratio decidendi summary: medium

Where a substantial, specialised structure is integral to enabling specified heavy machinery (here, STS cranes) to operate, it may properly be characterised as plant (apparatus) rather than land/premises, and "the provision of plant" can encompass costs of installing or preparing the structure without which the machinery could not be said to have been provided.

Obiter dicta

This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.

AI confidence in this obiter dicta summary: medium

The Tribunal indicated it would not have been satisfied that the expenditure fell within List C item 22 (alteration of land only for installing plant) or item 24 (jetty or similar structure mainly to carry plant) on these facts, and endorsed the relevance of authorities treating large specialised structures as plant where their parts are integral to the operation of heavy machinery.

Warning

- The chunk contains substantial repetition and duplicated passages; care was taken to judgment the Tribunal's findings and conclusions.

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