Expenditure on a yard used by vehicles was a repair of the yard and not a replacement of the yard, and so was a revenue expense. 

Summary 

Expenditure on a yard used by vehicles was a repair of the yard and not a replacement of the yard, and so was a revenue expense of the company’s business. 

Background 

A site, which included a factory and yard, was acquired in 2004 by a married couple and leased to the appellant company. The factory and the yard together formed the entirety of the relevant asset. Before and after the relevant expenditure, the whole of the yard was used to unload articulated lorries, to move those lorries, and to provide trailer storage. The cost of the works was approximately £74,000. The cost to replace the entire site would be approximately £6,500,000. 

Prior to the expenditure,