Capital Allowance: Is Book a Plant?
Daphne v Shaw (HMIT) 11 TC 256 England & Wales 9 November 1926 The Appellant, a solicitor, claimed a deduction under Rules 6 and 7 of the Rules applicable to Cases I and II of Schedule D regarding wear and tear and obsolescence of books forming part of his law library. Held that the books […]
Capital Allowance: Is Lamps a Plant?
J Lyons and Co. LtdvAttorney-General Supreme Court1994 A company tried to treat lighting in a tea shop as a plant. As mentioned in Yarmouth v France– the beginnings of a definition above, the earliest definition of the plant came from a case that had nothing to do with tax. Given the significance that the term […]
Capital Allowance: When a setting is Plant – Moveable Partitions
Generally, an asset that is part of the setting is not a plant. But, there have been a few instances in which assets that are a part of the setting but are not a part of the business premises have been determined to be a plant because they were also an apparatus that was used […]
Capital Allowance: Is Ceilings a Plant?
Normally suspended ceilings and acoustic tiles are not plant. In Hampton v Fortes Autogrill Ltd, the company claimed capital allowances on false ceilings in a restaurant. The claim was rejected. The ceilings’ only function was to conceal service pipes, wiring etc. They were not apparatus with which the company carried on its trade of running […]
Capital Allowance: Premises Test, Functional Test & Business Use Test
Wimpy International Ltd v Warland (H.M. Inspector of Taxes) Associated Restaurants Ltd v Warland (H.M. Inspector of Taxes) Court of Appeal (Civil Division) England & Wales / 07 December 1988 These were appeals by the two taxpayer companies against the decision of Hoffmann J. ([1987] BTC 591) that the Special Commissioners were entitled to hold […]
Capital Allowance: Whether expenditure on constructing a Car Valeting Bay is Plant
It was held by the First-Tier Tax Tribunal that the valeting bay was not plant. The building does not perform a function, it was a place of work which does not amount to plant. Rogate Services Limited v HMRC Introduction 1. This is an appeal by Rogate Services Limited (“the Taxpayer”) against the disallowance of […]
Capital Allowance: Whether Car Wash enclosures constitute Plant
Attwood (HM Inspector of Taxes) and Anduff Car Wash Ltd This was an appeal by the Revenue from a decision of the special commissioners that the entire site on which stood a building incorporating car washing machinery and control equipment qualified as “plant” for the purposes of capital allowances. Anduff’s trade was operating some 78 […]
Back to Basic: The Capital Allowance in Malaysia, Is Horse a Plant?
It is no secret that claiming Capital Allowances on plant and machinery expenditure can be a complicated business. While claiming allowances on business equipment such as motor vehicles, computers, tables, and chairs is straightforward, fully maximising a Capital Allowances claim on renovation and property purchases is fraught with complexities. Even the most basic question doesn’t […]
Capital Allowance: Whether a Ship used as a Restaurant constitutes Plant
High Court of Justice (Chancery Division) Court of Appeal Benson (H.M. Inspector of Taxes) v Yard Arm ClubLtd 15 January 1979 England & Wales In 1962 the Company bought a secondhand ship and converted her into a floating restaurant. The converted hulk had no means of propulsion or steering. She was moored with an attendant […]
Labuan Foundations
The Labuan Foundations Act of 2010 regulates the formation of foundations in Labuan as well as their administration and dissolution after they have been established. What is a Labuan foundation? A Labuan foundation is similar to a company in that it is a corporate body with a separate legal entity, established to hold assets in […]
