Melluish (Inspector of Taxes) v. BMI (No 3) Ltd

[1995] 4 All ER 453
[1996] AC 454

---

(Judgment by: LORD SLYNN OF HADLEY)

Melluish (Inspector of Taxes)
v MBI (No 3) Ltd

Court:

Judges: Lord Goff of Chieveley
Lord Browne-Wilkinson
Lord Slynn of Hadley
Lord Nicholls of Birkenhead
Lord Steyn

Subject References:
Capital allowances
Machinery or plant
Expenditure on provision of machinery or plant
Capital expenditure incurred by taxpayer companies on plant and machinery leased out and installed in premises owned and occupied by local authority
Central heating installed in council houses
Whether lessors entitled to writing-down allowances
Whether plant and machinery becoming fixtures on local authority's land
Whether plant 'belonging' to lessors
Whether central heating 'belonging' to lessors
Whether plant could be treated as belonging to lessors if expenditure had been incurred by local authority
Whether lessors having 'interest in the relevant land'

Legislative References:
Finance Act 1971 - s 44(1)
Finance Act 1985 - s 59; Sch 17, para 3

Case References:
Gough v Wood & Co - [1894] 1 QB 713, CA
Hobson v Gorringe - [1897] 1 Ch 182, CA.
Morrison, Jones & Taylor Ltd, Re, Cookes v Morrison, Jones & Taylor Ltd - [1914] 1 Ch 50, CA
Pepper (Inspector of Taxes) v Hart - [1993] 1 All ER 42; [1993] AC 593; [1992] 3 WLR 1032, HL
Reynolds v Ashby & Son - [1904] AC 466; [1904-7] All ER Rep 401, HL
Samuel Allen & Sons Ltd, Re - [1907] 1 Ch 575
Simmons v Midford - [1969] 2 All ER 1269; [1969] 2 Ch 415; [1969] 3 WLR 168
Stokes (Inspector of Taxes) v Costain Property Investments Ltd - [1984] 1 All ER 849; [1984] 1 WLR 763, CA

Judgment date: 12 October 1995

---

Judgment by:
LORD SLYNN OF HADLEY

My Lords, I have had the advantage of reading in draft the speech prepared by my noble and learned friend Lord Browne-Wilkinson. For the reasons he gives I, too, would dismiss the appeals.