I've a mental block whilst on Gardening Leave.
A taxi driver (sole trader) has retrained to be a personal fitness instructor & incurred costs in qualifying to be a PT Fitness instructor.
She wishes to claim the costs in the accounts for the new fitness business. I've said the costs of acquiring new skills that provide an enduring benefit to the business are capital in nature & cannot be claimed as a revenue deduction. But - is tax relief due on these costs by way of Capital Allowances? If so, is AIA due? Or is no relief due at all for these costs?
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The taxi driver clients I have had in the past have always looked like they would sweat just looking at a fitness instructor.
P.s I agree with Timmy.
On a serious note...
Retraining costs for a new career are not allowable.
If the client used to be a fitness instructor, and the course was to to refresh and update her existing skills, the costs could be claimed in the accounts of the fitness business.
If the fitness business isn't trading yet the costs can be brought in once the business begins. From what I remember there used to be a seven year cut off - I'm not sure what the time limit would be now as the tax return limits have changed since I last looked into this. But it would follow the normal pre-trading expense rules.
Not allowable
It is not allowable. It is not revenue of capital expense, it is just not allowable.