Mrs M E McMillin v Commissioners for Her Majesty's Revenue and Customs
Decision date: 19 January 2011
Neutral citation: [2011] UKFTT 65 (TC)
Overall AI summary confidence: high
Short overview
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AI confidence in this short overview: high
Mrs McMillin appealed HMRC’s refusal to allow capital allowances for items and the cottages at Southwaite Green; disputed items were stone ground floors, windows, paint/decorating and an earth bund. The tribunal found the cottages are not plant and each disputed item either falls within List A (building fabric) or otherwise does not meet List C criteria (or is excluded by section 22/23), and dismissed the appeal.
Ratio decidendi
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AI confidence in this ratio decidendi summary: high
A solid, permanent building used as holiday cottages is not plant simply because of its use; such premises are generally excluded from plant treatment absent very exceptional circumstances. Where an asset’s principal purpose is to insulate, enclose or provide a permanent interior surface (floor, wall, ceiling), section 23(4) and the List A/List C framework prevent it from qualifying for plant and machinery allowances.
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 observed that planning restrictions on future use do not conclusively convert a solid building into plant because such restrictions can be changed, and that analogies to movable structures (e.g. caravans) cannot be used to expand the statutory Lists; these comments are not framed as necessary to the decision.