Case Law

In McKinney (HMIT) v Hagan Caravans Manufacturing Ltd 1997 STC 1023 grants paid to a caravan site by the International Fund for Ireland did not qualify for capital allowances as they were met by “government or public or local authority”

In Cyril Lord Carpets v Schofiled 42 TC 637 capital expenditure which has been incurred and which was subsequently reimbursed by way of grant was held to have been met directly or indirectly by the person providing the grant.

In Stokes v Costain Property Investments Ltd 1984 STC 204 it was held that land development expenditure financed by a loan which was to be repaid on the satisfactory completion of the development agreement had been incurred by the developer and that the expenditure should not be regarded as having been met by a third party.