|
Capital Allowances |
39 |
of the trade while in the second it was simply a necessary and transitory incident of the conduct of the supermarket.365 |
24A.3.2.2.1 Others There is now no mention of mills, factory or other similar premises. Under the old law a building was a factory only if something is made there and so it followed that a repair depot could not normally qualify.366 Today the same decision would be reached since the court went to hold that the building could not be treated as one in which goods were subject to a process since a process connoted a substantial degree of uniformity or system of treatment and not an individual treatment of each item as it came in. |
The trade consisting of catching or taking fish or shellfish is still in the approved listed.367 The other trades mentioned in Table A are agricultural contracting and mineral extraction. See also extensions beyond qualifying trades below. |
24A.3.2.3 Exclusions |
Section 277 specifically excludes any building used as, or as part of, a dwelling-house, retail shop, showroom, hotel or office and of any building ancillary to the purposes of those excluded.368 In determining what is an office, the courts have not been blinded by terminology. Thus, a drawing office is no more an office than a machine shop is a shop.369 The question whether a storage area is a warehouse in its own right or merely ancillary to a shop is one of the fact and degree; a commissioner’s finding that a document and data processing centre was not an office was held by the Court of Appeal to be one which he was entitled to reach.370 ‘Ancillary’ means ‘subservient’ or ‘subordinate’ so buildings which are warehouses used exclusively to receive and store goods, and then distribute those goods for retail sales in a group’s retail shops, clearly come within that subordinate role and so cannot attract allowances.371 However, the result may be different if the building is used to serve not only the taxpayers’ retail shops, but also a wholesale business for other customers.372 |
24A.3.2.4 Extensions beyond Qualifying Trades |
| A commercial building built in a designated enterprise zone qualifies for special 100% initial allowances, together with 25% writing down allowances as appropriate.373 |
The allowance is extended to the provision of qualifying sports pavilions374 whether or not the trade falls within the qualifying list. |