Pub alterations

The appellant company JD Wetherspoon runs and develops public houses across the UK. It claimed capital allowances in its corporation tax return for the period to 31 July 1999 under CAA 1990 ss 24 and 66 (now CAA 2001).HMRC reduced the claim so the company appealed.

The hearing before the Special Commissioners considered sample claims. These concerned decorative wood panelling and alterations to kitchens and toilets.

With regard to the decorative wood panelling the Commissioners said that the panelling effectively turned an unpanelled room into a panelled one in order to create a specific ambience. The panelling could therefore be described as having become part of the premises rather than having retained a separate identity and did not qualify as plant.

There was a real distinction between alterations to a building incidental to the installation of plant and alterations consequential on the installation of...