Mrs C A Andrew v Commissioners for Her Majesty's Revenue and Customs
Decision date: 1 November 2010
Neutral citation: [2010] UKFTT 546 (TC)
Overall AI summary confidence: high
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: high
Mrs Andrew bought a wooden gazebo for her pub garden and claimed first-year capital allowances. The Tribunal held the gazebo met the business-use test and was not part of the premises, so it qualified as plant and was eligible for first-year allowances. HMRC's characterisation of it as premises or a list C decorative asset was rejected.
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: high
An asset affixed to premises is plant where it retains a separate identity as apparatus used in the business rather than forming part of the premises; relevant factors include visual separate identity, degree of attachment and permanence, whether the premises are incomplete without it, movability, and the asset's function within the trade.
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 suggested that an asset providing shelter but also facilities integral to the trader's function (for example fixed seating for consuming food and drink) is more likely to be plant than a mere building or decorative asset. It also noted that a feature whose primary purpose is seating or shelter rather than visual amenity is unlikely to be a "decorative asset" under list C item 14.