Tapsell, Tapsell & Lester (t/a The Granleys) v HMRC

In Tapsell Tapsell & Lester (t/a The Granleys) v HMRC (TC01231 – 13 July) a partnership (G) purchased a care home in December 2003 for £650 000.

In the purchase agreement £597 500 was attributed to the property while £40 000 was attributed to fixtures and fittings and £12 500 was attributed to goodwill.

G claimed capital allowances on the basis that £106 014 of the £597 500 was attributable to plant and machinery.

HMRC rejected the claim and the First-tier Tribunal dismissed G’s appeal.

Judge Blewitt observed that it appeared that the vendors had been entitled to claim capital allowances in respect of the expenditure in question.

G had produced no evidence to show that the vendors had not made such a claim.

Therefore the effect of CAA 2001 s 185(2)(b) was that G was not...