Gym Equipment in Home Office

Gym Equipment in Home Office

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My client has a log cabin in his garden which is used as the business (Ltd Co.) office. It is in use 5 days a week from 9-5 by him and his wife (employee).

The office also includes various gym equipment including a running machine, weights and a rowing machine. This equipment is used by the company staff ( ie director and his wife).

Can the company expand/upgrade the gymnasium facilities as sport and recreational facilities with no further tax implications? Or does this fall under exclusion as 'a facility provided on domestic premises' (197G subsection 3c)?

Many thanks
C Webb

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By Simon Sweetman
04th Sep 2007 17:38

gym equipment
Yes, the company can do it. But it will all end up as benefits in kind and I can't see a claim that exercising is in the performance of the duties carrying much weight !

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By Paul Soper
05th Sep 2007 17:10

Interesting...
There is an exemption provided for equipment of this type under s261 ITEPA but before you get too excited there is an exception to the exemption under s262 where the facilities are provided on domestic premises.

So is the log cabin domestic premises? It would seem likely and logical that it isn't, but the definition of domestic premises goes on to include land or other premises belonging to or enjoyed with domestic premises. Now of course if the local authority find out about the log cabin they'll look for business rates and the revenue would look for a gain on sale as falling within s224 (so remove the log cabin before sale) but there will be, and indeed should be at the moment a liability being 20% of MV. [By the way I'm not sure I follow the statutory reference of s197G etc provided.]

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