The complexity of capital allowances

Alun Oliver reviews the capital allowances case of Glais House Care Limited v HMRC

Capital allowances has seen a flurry of recent legal decisions issued in the last few months. The decision in Glais House Care Limited v Commissioners for HMRC [2019] UKFFT 0059 (TC) highlights the complexity of capital allowances on second hand property purchases and specifically the approach and restrictions on valuation of capital allowances on the purchase of an existing care home, Glais House in Swansea. HMRC challenged the purchase claim made by Glais House Care Limited (Glais House) following their claim for plant & machinery allowances (PMAs) and integral features allowances (IFAs).