Acorn Venture Ltd v The Commissioners for HMRC
Decision date: 22 November 2023
Neutral citation: [2023] UKFTT 995 (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
Acorn Venture Ltd bought 26 prefabricated timber pods in 2015 and claimed Annual Investment Allowance (AIA). The tribunal found 20 "Basic Pods" were not buildings or fixed structures and so qualified as plant; 6 "Teacher Pods" were fixed and, on balance, buildings and excluded from AIA for the relevant period. Although the Teacher Pods could be moved in principle, there was no evidence of an intention to move them during the 2015 accounting period so Item 21 did not apply.
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
Whether an item is a "fixed structure" or a "building" under the CAA depends on the factual matrix and overall impression of construction, permanence and connection to services (e.g. foul plumbing). Where a moveable-building exception is relied on (Item 21 List C), there must be evidence of an intention to move the building in the specific accounting period in which AIA is claimed.
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 the cost or practical difficulty of moving a structure does not by itself negate movability or an intention to move it, and noted that the statutory wording ("in the course of" vs "for the purposes of") may not produce a substantial difference in many cases; relocating accommodation between sites can qualify as movement in the course of a qualifying activity.