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Are capital allowances available?

Does the cost of a bike trail count for CAs?

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A client has 'built' a bike trail in the grounds of their hotel, for use by their guests.  This has involved planning costs, materials, labour, hire of equipment and so on, to transform existing fields and woodland into the bike trail.  In due course it will need to be maintained, as the surfaces will need to be replenished, signage repainted, borders built up and so on, but it will be a permanent installation.

Do the the initial costs qualify for CAs?  If so, is this a 'works' that would be P & M, and qualify for AIA, or is this SBA?


Replies (3)

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By Anonymous.
15th Sep 2020 19:27

Not something I have seen before. What's your thinking based on what you've read so far?

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By Wilson Philips
15th Sep 2020 21:41

My instinct says no. If it is simply a case of re-shaping the land, creating mounds etc I would say that it doesn’t amount to a structure. I’d say even less likely to be functioning plant. Alteration of land for the purposes of installing plant is OK, but not where the land itself is the ‘installation’.

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By ianthetaxman
16th Sep 2020 10:38

Thanks - my initial thoughts were that it wouldn't qualify as P & M on the basis that it was no more than alterations to land.

I don't believe this is a full on downhill bike park type trail (full of structures erected to create features) so don't think there is much scope to argue that the latter point made by WP.

P.S. - somehow this post was duplicated so there is another version of it???.....

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