It was welcomed by the HM Revenue and Customs (HMRC) the dismissal of a multi-million pound tax allowance claimed by one of the UK’s largest clothing retailers by the higher Tribunal’s.
The claim of Next Distribution Limited, part of Next Group Plc Industrial Buildings Allowance (IBA) was GBP19m (USD31.8m). It was not allowed to write off some of their construction costs as the sites built were used to subject goods to a process or to store goods on their arrival in the UK. The claim of Next Distribution Limited for the allowance was refused by HMRC on the basis that unpacking bulk deliveries and repacking them in smaller packages was not available in the scope of the allowance.
