The appellant was a self-employed air conditioning engineer. During his accounting year ended 31 March 2009 he purchased a new van. He claimed the annual investment allowance (AIA) on the cost of the van. The appellant subsequently incorporated his business, and the company commenced trading on 1 April 2009.
The capital allowances legislation (at CAA 2001, s 38B) provides that expenditure does not qualify for AIA if it is incurred in the chargeable period in which the qualifying activity is permanently discontinued. The First-tier Tribunal (FTT) had to decide whether the appellant permanently discontinued his trade in the year ended 31 March 2009, for the purpose of establishing whether he could claim AIA.
It was argued on behalf of the appellant that his trade continued after 31 March 2009. In particular, the appellant carried out maintenance and warranty work for twelve months following installation. He continued to do this
