Are capital allowances available on a "geo dome" (quite like a large marquee or tent) for use at a festival.
It will be used as a venue for a festival stage, but also house a cafe/bar. I know the fixtures and decoration will be classed as plant. But what are peoples thoughts on the geo dome itself. It was bought for around £10k last year.
Thanks in advance
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List C?
CA 2001 s.23 List C item 21 refers to "Moveable buildings intended to be moved in the course of the qualifying activity" so I think you could have a point if you can argue it is a building not a structure, but agree with Steve, sounds more like a structure to me... but then "“structure” means a fixed structure of any kind" so I suppose the question is whether it would be considered a "fixed" structure..? That said, if it can be "put up and taken down" isn't it more just like a collection of scaffold and tarpaulin and therefore just plant & machinery and fully claimable?
More Information Needed
Hi,
Can you describe the main functions of the Geo Dome in this context? For instance is it purely to provide shelter or does it fulfill other criteria?
Well...
... if it's actually going to be moved from site to site, it may very well qualify.
What is the trade of the person that wants to claim capital allowances and how does it operate? How will the dome be used in that trade?
If it's being hired to people, I can't see that it's anything other than plant.
If the trade can only be carried on while it's in place and it stays in place for any length of time it might swing the other way though.
Well again
I think from the discussion so far it does seem to fall into a bit of a "grey area".
In these situations you could claim it for capital allowances purposes but be honest with the client and say that it could be challenged by HMRC. My argument for claiming it would be that it is temporary therefore fails to meet the usual definition of a building or structure.
If it is hired out temporarily then my uderstanding is that in those circumstances it would actually be stock and would be claimed as such but I am happy to be corrected on that issue.