Gazebo is plant

The taxpayer runs a country pub in West Sussex. In August 2008 she bought a wooden gazebo that was placed in the pub’s garden. The plan was to provide cover for customers who smoked. The taxpayer claimed first-year capital allowances on the cost of the structure.

HMRC said the gazebo was not apparatus with which Mrs Andrews business was carried out but formed part of the premises in which it was conducted; it was not therefore plant on which capital allowances were available.

The taxpayer appealed.

The First-tier Tribunal said the publican had to provide facilities for customers to eat and drink. There was no doubt that had the gazebo been a polygonal bench surrounding a table then it would be plant.

It would then be a permanent asset provided for the comfort of customers while in the pub. As...