In Cheshire Cavity Storage 1 Ltd & Anor v HMRC [2022] EWCA Civ 305, the Court of Appeal agreed with the lower courts that underground gas storage cavities were not plant and were not eligible for plant and machinery capital allowances.

The appellants were companies in the EDF Energy PLC group operating gas storage facilities on adjoining sites in Cheshire.

The First Tier Tribunal (FTT) agreed with HMRC finding that the cavities were not plant, and even if they were, they were excluded from allowances by s.22 CAA 2001 as:

The Upper Tribunal (UT) upheld the decision of the FTT; a plant-like function (which the cavities did have) does not necessarily make premises plant, in circumstances where the premises also function as premises.

The Court of Appeal (CofA) also found that the cavities were not plant:

Useful guides on this topic

What expenditure qualifies for plant & machinery allowances?
What expenditure qualifies as plant and machinery? What is treated as part of a building? What is excluded?

Plant & machinery: Allowances
What capital allowances are available on plant and machinery? How do you calculate them? What are qualifying activities?

External link

Cheshire Cavity Storage 1 Ltd & Anor v HMRC [2022] EWCA Civ 305


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