Capital Allowance?

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in General accounting discussion
Can an awning over a shop front attract capital allowances? I suspect not because of its passive function.

Thanks for any advice.

Simon

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Capital Allowance?

    I wouldn't have thought so - I know that the coverings over petrol stations don't qualify, so I would guess the same rules apply.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Capital Allowance?

    This is a grey area Bluerhapsody and you may do well to seek clarification from HMRC on this.

    Jodie cites Dixon v Fitch's Garage (1975) where HMRC held that a garage canopy over a petrol station did not help in the supplying of petrol therefore it was held to be part of the setting and therefore not plant.

    However, the Revenue could accept that if the awning fulfils a function i.e. advertising or attracting customers to the shop then it could be plant. The case law here to consider is O'ulachain v McMullan Brothers and the taxpayer in this case succeeded as the canopy carried advertising.

    The test is the "function v setting" test.

    Kind regards
    Steve

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