Eco-friendly, but not plant

The taxpayer an accountant bought a house and some barns together with some land. She had the barns demolished the house renovated and four holiday cottages built.

In her tax return for 2006/07 she claimed capital allowances in respect of stone floors windows paint and decorating and an earth bund which HMRC refused. The taxpayer appealed.

The First-tier Tribunal decided first that the holiday cottages which the taxpayer describe as an eco-development could not be classified as plant. With regard to the stone floors the taxpayer said that the flooring was integral to the heating system.

However the tribunal noted that the upper floors were wooden and said that if stone floors were part of the heating system it would have expected the upper floors also to be stone regardless of having to reinforce them...