A UK court decision to classify a multimillion pound work of art as 'plant' will 'offend almost anyone with an inkling of common sense'.

That's the message from Richard Murphy, head of Tax Research LLP, who said the Upper Tribunal's decision over a Sir Joshua Reynolds masterpiece was 'surreal' and 'lacked common sense'.

The court decision – which overturned an FTT decision – means that in tax law, the Portrait Of Omai (right), painted in 1776, is 'plant' and a 'wasting asset' and is, therefore, exempt from capital gains tax (CGT).