My client is a sole trader who is a child minder.Her accounts are prepared on a cash accounting basis as her turnover is well below the £150k limit. She is looked at the possibility of building a space portacabin type building in her back garden.
I know from a traditional accounting point of view this can be capitalised and capital allowances can be claimed only on the installation of the fixtures & fittings such as the electrics and heating. I know that the installation of the actual building cannot be claimed on this basis.
However my question is can she claim back all the costs of the bulding of the portacabin as an expense under the cash accounting basis?