In Lord Howard of Henderskelfe’s Executors v HMRC (Upper Tribunal – 11 March) executors sold a painting for £9 400 000. They declared the gain on their return but subsequently sought to amend the return on the basis that the sale of the painting was exempt from CGT under TCGA 1992 s 45. HMRC issued a closure notice stating that CGT was chargeable on the disposal. The executors appealed contending that the painting was ‘plant’ and was a wasting asset. The Upper Tribunal accepted this contention and allowed the appeal. Morgan J held that ‘the painting satisfied the tests as to function and as to permanence in the established test as to the meaning of plant’ and that TCGA 1992 s 44(1)(c) deemed it to be a wasting asset.
Why it matters: TCGA 1992 s...
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