Nature of storage

Maco Door and Window Hardware imported hardware for PVC windows and doors manufactured by its Austrian parent company. It held a large number of items in stock. The company claimed industrial buildings allowance for the accounting periods ended 31 December 1999 and 2000.

HMRC refused the claim so the company appealed.

The issue was whether the warehouse was used for the purposes of a trade or part of a trade consisting of the storage of goods. The Special Commissioner found from the evidence that storage was a separate part of the company's trade. Thus the building used for such storage was an industrial building within CAA 1990 s 18(1)(f)(i) and they allowed the appeal. HMRC's subsequent appeal to the High Court was allowed because the judge said that storage supported the company's trade rather than being a part of it. The company appealed.

The Court...