This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Capital or revenue expenditure?

By Kevin Read, November 2020

Kevin Read reviews recent case law on re-surfacing land. 

Whether re-surfacing work is allowable revenue expenditure or extra capital expenditure on the land will depend on whether it can be seen to enhance the working area or value of the site. 

Resurfaced yard  

The recent case Steadfast Manufacturing & Storage v Revenue and Customs [2020] UKFTT 286 (TC) concerned an appellant that leased a factory and yard. The latter had not been resurfaced since before the site was acquired and was in poor condition. Some areas were unstable and unsuitable for use by forklift trucks, although they were used when necessary to turn the trailers for articulated lorries.  

Historically, the yard was repaired twice a year by patching with gravel. The forklift trucks would quickly damage this material and, with this patching becoming

This is one of our 1937 Premium articles

To see this article in full and unlock access to our complete library of 1937 articles click 'subscribe & unlock' below:
SUBSCRIBE & UNLOCK

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you for signing up to hear from us!