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.