Hi all,
My employer owns and operates a landfill site dealing with inert materials through a private limited company (Company A) on a leasehold basis (the landfill sits on a farm site which is owned by a farmer.)
My question is, that the limited company has been charged in the region of £100,000 for 'Landscape improvement costs' which essentially appears to be site preparation works of a capital nature. The landfill site is expected to operate for around 3-4 years dependent on volume.
I would normally refer to s.142 CTA 2009 and anticipate that this expenditure would be subject to tax relief however, the limited company does not hold the permit for the tipping site, this is held by another company (Company B).
Company B charges the end user for tipping and Company A makes a charge to Company B before passing on monies to the farmer (based on weight deposited at the site).
As Company A does not hold the permit and is almost just a conduit for holding the leasehold, does this restrict any entitlement to tax relief in anyone else's opinion. I was hoping that capital allowances would be available on the expenditure, but I fear that the structuring of the transactions may preclude this?
Thanks
Ant
Replies (2)
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First
Can I first congratulate you on your new job.
http://m.accountingweb.co.uk/anyanswers/question/kitchen-fit-out-annual-...
Does your new employer know that you are seeking advice from strangers? Where do you stand with him/her if you take advice from posters here and it turns out to be wrong? If he/she is spending £100k, it would be worth spending a few hundred pounds getting advice from a professional who your employer can sue in the event of problems arising.