Capital Allowances / Repairs HOTEL

Capital Allowances / Repairs HOTEL

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A client has recently done a major refurbishment and extension to Hotel. A complication is the project spanned 1 April 2008.

There are several items that I am not sure what can be claimed.

LOWERED CEILINGS - It is my understanding that this would normally be treated as part of the building, however as it is a hotel I wondered if (prior to 1Apr 08) it could be classed as Plant as it is for the AMBIANCE of the hotel. For Lowered ceiling done after 1 April 2008 would it be treated as Integral Features as they comprise the lighting system, or could it still be classed as plant under the anbiance test.

TILING - The Weatherspoons case did not allow tiling as Plant. However if some of the tiling is to replace existing tiling, can a proportion be claimed as repairs.

WALL PANNELING - A considerable amount has been spent on wood and glass wall panneling. Again this was not allowed as plant in the Weatherspoons case. However would this be allowed as a repair if replacing wallpaper or tiling? I guess HMRC would class this as an improvement. What if it was to replace old panneling?

FIXED SEATING - I assume that the fact that the seating is fixed does not preclude it from being treated as Plant.

PATIO DECKING - A considerable amount was spent on a new Patio. It replaced an existing patio in a similar location. However the old patio had to be destroyed during the building of the extension. Would it be possible to claim some or all the expense as a repair?
Mark Gosling

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By User deleted
04th Dec 2008 09:58

Integral features
New rules, new arguments!

You are right to follow the direction of the Wetherspoons case, and you seem to have worked through most things. In most instances I would guess that you are repairing and renewing as opposed to creating new assets.

With the ceiling, then the lighting might be repairs or a new integral feature, but I cannot see that a plain but lowered ceiling could be anything other than part of the structure.
Tiling and panneling sound like repairs, but check out the details. Fixed seating - I would agree as plant, albeit fixtures.
Patio - replacement of the asset - seems to be part of the structure, unless it has some sort of extra special function which is unlikely, but then you never know - could be part health spa, that sort of thing.

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