In Hopegar Properties Ltd v HMRC (TC02734 – 17 June) a company (H) traded from a site on an industrial estate. It claimed deductions for expenditure on relaying and resurfacing a carriageway resiting its car park reinstating a footpath and diverting telecommunications cables. HMRC rejected the claims on the basis that the expenditure was capital but the First-tier Tribunal allowed H’s appeal holding that the expenditure was revenue expenditure.
Why it matters: The First-tier Tribunal accepted the company’s contention that the disputed expenditure was revenue rather than capital.
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