Vagueness of ‘plant’ leads to surprising result

Table of contents

• Original news
• What is the significance of this decision?
• What is the definition of a wasting asset?
• What does this tell us about the courts’ approach to plant for the purposes of tax?
• The case law used when discussing the definition of plant was fairly antique—is this an area ripe for modern case law?
• This case would appear to many to be a defeat for common sense—can this decision be justified in any other way than as a strict application of the law?
• How can the reasoning of this judgment be applied to estate planning/tax management?

Article summary

Private Client analysis: The Upper Tribunal’s finding that an Old Master which had sold for several million pounds was a wasting asset may not survive an appeal, says Patrick Way QC, of Gray’s Inn Tax Chambers.