Upper Tribunal applies Ramsay to capital allowance claim

“Taxpayer win on Ramsay.

The Upper Tribunal has reversed the decision of the FTT and held in the taxpayers’ favour in Altrad Services Ltd and Robert Wiseman and Sons Ltd v HMRC. The UT applied the Ramsay jurisprudence to hold that the taxpayers did “cease to own” plant and machinery for the purposes of CAA 2001 in circumstances where they had sold the plant and machinery to a third party, rented it back from the purchaser, and ultimately repurchased it.

The UT upheld the FTT decision on the other issues, and so held in favour of the taxpayers.

Jonathan Peacock QC and Edward Hellier appeared on behalf of Altrad Services Ltd and Robert Wiseman and Sons Ltd”