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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?

Thoughts?

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By David Henry
16th Sep 2020 07:47

Morning. My views are that the creation of the bike trail would not be allowable for plant and machinery allowances. It would be caught by the exclusions under CAA2001 s22 list B (2). "A way, hard standing (such as a pavement), road,...."are defined as a structure and do not qualify for PMA. It would also be caught by s22 1 (b) Works involving the alteration of land do not qualify for PMAs. You would be able to claim main pool allowances on signage and potentially SBAs on the creation of the bike trail but not PMAs. Hope this helps. Thanks David

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By ianthetaxman
16th Sep 2020 10:41

Thanks DH.

Somehow this post has been duplicated here. The original post is here:

https://www.accountingweb.co.uk/any-answers/are-capital-allowances-avail...

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