'Posh Shed' office. What can you claim? | AccountingWEB

'Posh Shed' office. What can you claim?

My client has just completed the building of a 'posh shed' in his garden. A pre fabricated type shed to be used as an office, no planning required. He has just passed me a pile of receipts relating to the purchase and construction with the expectation that they are tax deductible. He has 2 businesses, one flat rate and another standard vat.

I have a strong inclination that they are not tax deductible and if they were put through the business (capitalised), then capital gains tax would kick in when he sold his property (the office is in his garden). Is this correct?

Does anyone know if any expenses can be put through the businesses and if any VAT can be claimed back? I think claiming back the VAT on buildings relates to residential...not sure if an office is classed as residential?

Basically I don't know much but I am sure one of you out there has come across this before.There seems to be a trend these days for these posh offices...quite fancy one myself!!

Many thanks in advance.

There are 8 comments. Login or register to view them.

Not tax deductible

kenmoody |
kenmoody's picture

Agree with Ken - but as to VAT....

tonycourt |

Thanks Ken & Tony, was

LeighM |

Hi LeighM

tonycourt |

For the PPR

Constantly Confused |
Constantly Confused's picture

I assume you mean he can

LeighM |

Yes he can reclaim VAT but....

tonycourt |

I am going to embarrass

LeighM |