Enter Your E-mail

In Lord Howard of Henderskelfe (Deceased) v Revenue and Customs [2013] UKUT 129 (TCC) – a CGT case – the Upper Tribunal found that a painting was in fact plant used by a business. As plant, and therefore a wasting asset by virtue of TCGA 1992 s 44(1)(c), it was exempt from CGT.

It may seem strange for a valuable painting to be considered a “wasting asset” but it is important to note that s 44(1)(c) deems it to be so for CGT purposes, if it is plant.

This case is also relevant from a Capital Allowances perspective, borrowing as it does from Yarmouth v France, etc., in terms of what constitutes plant.

Two other points came out in the Upper Tribunal judgement:

1. The painting qualified as plant even though the owners did not themselves undertake the relevant qualifying activity.
2. The painting had the degree of permanence in business use (it had been on display for nearly 50 years) required in order to qualify as plant.

See Lord Howard of Henderskelfe (Deceased) v Revenue and Customs [2013] UKUT 129 (TCC) for further details