Potato store tribunal ruling

28th July 2021

In 2019 the first tier tribunal ruled in a case concerning a grain store that the entire structure qualified as plant and consequently gave rise to a capital allowance claim, by reason of it being a silo. As a consequences of this decision there have been a number of claims for capital allowances both in respect of grain stores built since that date and indeed for a number built prior to the case.

 

I am delighted to read that there has now been a further first tier tribunal ruling which has considered the eligibility of an agricultural store for capital allowances as plant. In this later case the building was a potato store. The claim to allowances succeeded as the tribunal ruled that the store qualified both as a silo and as a cold store. The decision concerning it being a cold store was particularly interesting as there was no refrigeration facility within the store.

 

It will be interesting to see whether HM Revenue & Customs appeal against this decision and to read the technical commentary which will doubtless follow. Although the case considered the storage of crisping potatoes there is at least an argument that similar considerations would apply to the storage of chipping potatoes, thus potentially making the case more relevant to a greater number of taxpayers. Certainly my colleagues and I will be reviewing which clients have constructed potato stores in recent years and as the consequences of this decision become clearer, considering where claims for relief can be submitted.

 

Other items in Agriculture
Louise Bassett
21st March 2024 Don’t Delay: Farming Equipment and Technology Fund Deadlines

Earlier this week, DEFRA added the closing dates for the Farming Equipment and Technology Fund (FETF).   If you’re a farmer, horticulturist, forestry owner or contractor to the any of the aforementioned, and you’re looking to improve productivity, manage slurry or improve animal health and welfare through the use of new technology and equipment, don’t…

Louise Bassett
21st February 2024 How is the government supporting farmers?

Let’s ask the question, ‘How is the government supporting farmers?’   DEFRA shared a press release from the Prime Minister yesterday, citing his and his party’s commitment to farmers and rural communities.   We already know that Sustainable Farming Incentive (SFI) and Countryside Stewardship payments are being increased across the board by approximately 10%, but…

James Cater
18th January 2024 Farming Group Newsletter – Issue 23

Over And Out   This will be the final Agricultural Newsletter produced during my tenure as Chair of our Farming Group and it would not be right if taxation was not considered in at least one contribution. Mike Blackledge provides for this with a review of the consequences of multiple rates of Corporation Tax where…

Liz Simpson
10th October 2023 Sick Pay: Farming Industry

The Farming Industry has some marked differences is sick pay legislation, PAYE regulations don’t pay sick pay over the statutory daily rate currently standing at £21.88 per day and commencing from the 4th consecutive day of absence. Statutory Sick Pay (SSP) is payable for the first 28 weeks of sickness, after which the employee can…

James Cater
18th July 2023 Farming Group Newsletter: Issue 22

Sticks and Carrots – No Change Then Over recent years farmers have been incentivised periodically to change their crop choices. We have had ‘yellow years’ as Oilseed Rape coloured our landscape and ‘blue years’ when Linseed was dominant. I suspect that ‘green years’ may be the next favoured colour and I’m not just thinking of…

Ian Piper
3rd May 2023 Tax traps: Beware

With the UK tax system as complicated as ever, there are certain rules which we come across that can very easily give a particularly unexpected (and unpleasant) consequence. Income Tax When either parent has taxable earnings over £50k (after personal pension contributions), entitlement to child benefit is reduced. As higher rate income tax starts at…