A client has built a shed for storing tools etc and use as a work shop and i am considering whether any tax relief is available for the cost. I would generally take the view that as it is a structure and provides the setting for the business no capital allowances are due and i cannot see any other treatment is relevant.
On a couple of occasions recently people have claimed that they are claiming either capital allowances or writing costs off over 10 years the costs of their garden offices - this treatment would appear wrong but perhaps I am missing something?
If any one has experience of agreeing a deduction for this type of expenditure or can confirm that no relief should be available comments would be appreciated.
Anon
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Why not?
Its a moveable structure and therefore allowable for Capital allowances.
However if it was not - and a permanent structure, then when it was sold business taper relief would be allowable. But as it is unlikely to be sold (what is its life? 10-20 year) it looks like more like a temporary structure, so still Capital allowances are allowable.
No plant and machinery allowance
... because it is not a building which is intended to be moved as part of the trade, such as Portakabins used as offices on construction sites. You could probably claim IBAs for the time being, but it is hardly worth the bother.
company owning the garden office shed
is there any reason why (my husband & wife owned client) company shouldn't buy the prebuilt shed and reclaim the VAT - if there is personal use then the 20% benefit charge will apply. the actual capital allowance issue is not significant compared to avoiding the need to pay tax on the addtional income that would need to be extracted