Capital allowances on acquisition of kit
I have a client that has acquired some tomato growing land, together with some kit to be erected/installed as sophisticated greenhouses which will be regarded as plant when complete. The kit cost over £1m.
Can the components be regarded as qualifying expenditure and eligible for capital allowances in the meantime?
I'd have said so... 2 thanks
... if he is already carrying on the qualifying activity, he only needs to have incurred qualifying expenditure (wholly or partly for the purposes of the qualifying activity) and own the plant at some time during the chargeable perod in question.
The need to bring the plant into use only applies where it has previously been used otherwise than for the qualifying activity or has been gifted (Ss.13 & 14 CAA 2001), as far as I can see.
To qualify as plant, they need to either be moveable (and intended to be moved in the sourse of the qualifying activity) or constructed so that the growing environment is controlled automatically by devices integral to the structure, otherwise it may be treated as a building or structure.