TAX NEWS: IBAs: Update on 'the end in store' . By Nichola Ross Martin

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In November 2005 we reported the case of Maco Door and Window Hardware v. HMRC SPC 508 [2005], which was found in favour of the taxpaying company Maco. The revenue appealed the decision and the High Court has now found in its favour.

The case concerns Industrial Buildings Allowances (IBAs), and whether or not storage in certain circumstances can be a trade in itself. The finding of the first hearing was controversial because it upset the revenue's published guidance. It increased (marginally) the incredibly limited opportunity that some businesses have of making a claim for storage on the basis that it was a separate part of their trade.

S.18 Capital Allowances Act 1990 provides, (so far as is material):

"(1) Subject to the provisions of this section, in this Part 'industrial building or stru...

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