Capital allowances on fences and field drainage

Capital allowances on fences and field drainage

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A client purchased 100 acre farm which was very run down. In 2010 he has had to put up new fencing and install field drainage to improve the main field before it can be occupied by stock. Any chance he can claim cost as plant and machinery for capital allowances instead of ABA? Would it make a difference if it was treated as a revenue expense in accounts instead of being capitalised? What if it replaced a very ancient and unstockproof fence?

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By The Minion
12th Sep 2011 23:08

isn't this as simple as...

He has replaced the old boundary fences = repairs

He has reploced the old mole or whatever form of drainage was there before = repairs?

The farm must have been able to have been used as a farm before, possibly not in very wet weather but still usable so we arent looking at a Law shipping situation.

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