Successful tax refund for grain silo treatment
12th February 2020
A successful legal case claiming that grain silos should be treated as plant and machinery for corporation tax purposes – rather than land and buildings – has resulted in a successful tax refund claim by Whitings.
The claim was submitted following precedent set in the legal case, and resulted in a substantial tax refund dating back to previous years’ returns and further reliefs to be utilised in the future.
The legal case looked into the use of a grain silo and concluded that it was plant and machinery by nature on the basis that it is not just storage for grain, but performs functions of drying and sorting grain also.
By revising previous corporation tax returns submitted to account for this change, the company was eligible for additional tax reliefs in the form of capital allowances, and as such generated refunds for overpaid tax in previous years.
Corporation tax returns can only be resubmitted going back two years, however if required an overpayment relief claim can be made which in this instance allowed the claim to be backdated beyond the usual deadline.
Should you think this may affect your business, please be in touch with your Whitings adviser, or contact me using jaimieking@whitingsllp.co.uk
