CPA Bulletin

48 CPA Bulletin > May 2023 www.cpa.uk.net In answer to your question, the Loss Adjuster is correct in that you cannot claim ‘New for Old’ when an item of plant has been stolen or irreparably damaged, unless the plant is effectively nearly new. Within Clause 13(b) of the Model Conditions, it states that the customer will be liable for all loss or damage to the plant during the hire period, which would be based on the plant’s market value at the time it was stolen/irreparably damaged. This is why the Loss Adjuster has made that statement. We had an item of plant on hire to a customer when it was stolen. The matter has been processed by the customer’s insurer, but their Loss Adjuster has informed me that we cannot claim ‘New for Old’. Can you confirm if this is correct. No, I cannot foresee any problems with hiring to an English company based in Derry. What may be of concern with contractual arrangements is understanding the procedural steps should a dispute arise. Within clause 35 of the Model Conditions, it states that jurisdiction will be wherever the site is within the UK, so Northern Irish law will apply. However, as both companies are English, then should a dispute arise, there may need to be a discussion on whether Northern Irish law will apply to the dispute, or as both companies are English, if English law will apply. We are a plant hire company based in England, who is intending to hire to another English company, but they are based in Derry. Are you aware of any contractual complications that would apply when using the Model Conditions? Q&As: 1 q&a s The Chancellor announced the ‘Full Expenses’ deduction, which is the successor to the Super Deduction Allowance (SDA). Currently, HM Revenue and Customs (HMRC) is viewing the ‘Full Expenses’ deduction similarly to the SDA, in that companies who lease (hire out) their plant and equipment - irrespective whether an operator is supplied with the item or not - then the company cannot claim the ‘Full Expenses’ deduction. Contractors may be permitted to claim under this scheme. Hire companies are, however, still able to claim 100% deduction under the Annual Investment Allowance (AIA) for all qualifying capital expenditure up to a maximum of £1m per year. At the time of writing, the Treasury is planning to hold some meetings over the coming months, with the CPA and other key stakeholders on the ‘Full Expenses’ scheme. In light of the Chancellor’s recent Budget, what is your understanding on the 100% capital gains deduction? Does this now apply to all or only contractors? In the event of an item of plant being damaged during the hire period, can you clarify how the lost hire revenue is to be charged whilst the plant is being repaired? If you refer to at clause 13(b) of the CPA’s 2021 Model Conditions under ‘Hirer’s Responsibility for Loss and Damage‘, you’ll see that the customer is charged the ‘Idle-Time‘ rate (two-thirds of the hire charge) until settlement [for the damage] has been agreed [between the Owner and Customer]. The settlement figure may be unknown until the repairs have been completed, at which point the damage repair costs and the idle-time charge can be invoiced to the customer. We have supplied two machines - which had number plates fitted - to a customer in London. We have received two Penalty Charge Notices (PCNs) from Transport for London (TfL), due to neither machine complying with their Congestion Charge scheme. Are we liable for these charges? I have referred to the Transport for London’s (TfL’s) website at www.tfl.gov.uk/modes/driving/ultra-low-emission-zone/discounts-and-exemptions and found the following information which details other exempt vehicles. Other exempt vehicles A small number of vehicle types currently exempt from the LEZ are also exempt from the ULEZ charge. These include: • Specialist agricultural vehicles • Military vehicles • Non-road going vehicles which are allowed to drive on the highway (for example, excavators) • Certain types of mobile cranes If your vehicle meets any of the above criteria and is registered in the UK, it is automatically exempt, and you don’t need to register with TfL. If your vehicle meets any of the above criteria but is registered outside the UK, it is also exempt, but you will need to register it with TfL. Armed with this information, you may wish to go back to TfL highlighting this section of their website and ask that they revoke both PCNs. Should you have any further issues on this, then please get in touch. Whilst every care has been taken to ensure the accuracy of the answers given within this section of the CPA Bulletin, no liability for any damage, liability, cost, loss and/or expense which the reader has incurred can be accepted by the Construction Plant-hire Association (CPA). The reader should obtain independent legal advice on any issue reported within the CPA Bulletin, before proceeding with a course of action.