The House of Lords has ruled in favour of HMRC in Maco Door and Windows Hardware.
Maco imported hardware for fitted windows from its Austrian parent and stored it in a warehouse and distribution centre in the UK. The company claimed industrial buildings allowances for the accounting years ended 31 December 1999 and 2000. HMRC did not allow the claim so the company appealed.
The Special Commissioner allowed the claim but this reversed in favour of HMRC by the High Court which was then overturned by the Court of Appeal. HMRC appealed.
The issue before the House of Lords was essentially whether the storage of goods was part of the company's trade within Capital Allowances Act 1990 s 18(2) (now CAA 2001 s 276).
Lord Walker said that to come within s 18(2) 'a part of a trade' had to be a viable section of...
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