Are costs of building an office tax deductable for corporation tax?

Are costs of building an office tax deductable...

Didn't find your answer?

I have a client who has recently sent up a limited company to build structures (home offices/summer houses etc) out of sustainable materials such as straw bales.  He is trialling some of the materials at home for their suitability to use in the business.  He is considering building a home office out of straw bales that will be used as an office but also by the family at weekends/evenings.  It will also be used as a showcase for potential customers to be able to see the finished product.  My question is, can the costs of the trialling and building of the office be deducted as an expense/capital allowance for corporation tax purposes.  Many thanks.

Replies (2)

Please login or register to join the discussion.

avatar
By occca
19th Jul 2013 12:31

.

They will use it personally too - so there would be a BIK charge on it if it was put through the business

You also need to consider what will happen when they sell their property

Thanks (0)
By Steve Kesby
19th Jul 2013 13:14

It's not deductible

Because it's capital expenditure, but as occca says, there may then be a benefit in kind. See this thread and the case of Denny referred to.

Thanks (0)