London Luton Hotel BPRA Fund LLP v HMRC  UKFTT 212 (TC)
Monday 10 June 2019
Jonathan Davey QC has received judgment from the First-tier Tribunal (“FTT”) in an appeal concerning the Business Premises Renovation Allowances (“BPRA”) regime under Part 3A of the Capital Allowances Act 2001. The case concerns a hotel in the vicinity of Luton airport. The key issue in the dispute is that of the proper characterisation of a multi-million pound payment known as the “development sum” made by the Appellant LLP under a contract known as the “development agreement”, and, in particular, whether or not the LLP’s entitlement to BPRA extends to the full amount of the development sum. The FTT (Judge Brooks and Nicholas Dee) found that the Appellant’s entitlement does not so extend. The FTT therefore found for the Respondents on the point. As to the component parts of the development sum, the FTT found in favour of the Respondents in respect of some and in favour of the Appellant in respect of others. Jonathan Davey QC acts for the Respondents (HMRC) with John Brimsmead-Stockham (11 New Square), Ruth Hughes (5 Stone Buildings), Sam Chandler (5 Stone Buildings), Nicholas Macklam (Radcliffe) and Hugh Cumber (5 Stone Buildings). Malcolm Gammie QC (One Essex Court) and Jonathan Bremner QC (Pump Court Tax) act for the Appellant. Both parties have sought permission to appeal.
Read the full judgment here.