Claiming a Horse!

Claiming a Horse!

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A slightly odd one this. We have a client who is a stuntman who has a spceiality in horse stunts amongst others. He has recently acquired a young horse, Freddy to train up with a view to using in the future.

How do we claim CA's on this acquisition? Obviously a horse in the long-term is a wasting asset but it clearly isn't Fixed Plant & Machinery.

We also have in the books some expenses for the horse that are a bit odd. A second, older horse, Kevin has been acquired with a view to being a companion for Freddy because it helps the younger horse be more docile and maleable. Is Kevin also CA'able?

FInally I have to address questions of Private Use. Our client rides the horses regularly (necessary for training them) and enjoys doing this. But does that make it a private use element?
Geoff Challinger

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By Paul Soper
24th May 2006 23:15

Yarmouth v France
The original case on the nature of plant is the above - a workmen's compensation case from 1887 - "plant includes whatever apparatus is used by a businessman for carrying on his business... - all goods and chattels, fixed and moveable, live or dead, which he keeps for permanent employment in his business" - the case considered whether a horse was plant - and came to the conclusion that it was. This one is a runner.

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By User deleted
24th May 2006 20:03

straight from the horses mouth........
http://www.hmrc.gov.uk/manuals/camanual/CA21220.htm

http://www.hmrc.gov.uk/manuals/camanual/CA27005.htm

No problem with claiming CAs on Freddie (see top link above). As far as private use is concerned this is one of those matters where the purpose of the expenditure is a question of fact. Is it private use or is it an incidental to the trade? My guess is there is no correct answer as its ultimately a matter of opinion for the Gen Comms. If you decide there is private use you must use a just and reasonable basis (see 2nd link) to determine the private use (i.e. private hours / private + stunt hours). Whatever you decide make a 'white space' entry on the return to protect from discovery.

As far as Dobbin (Freddy) is concerned, I thinks CAs are a no no as I would not have thought you could say he functions as apparatus with which the trade is carried on.

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By chaffe
02nd Jun 2006 08:58

hello geoff
if you are the geoff who worked with me at touche ross/ deloittes please ring me.
Mike chaffe on 01622 771512
Bye for now

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