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Capital allowances on shed

Capital allowances on shed

Client has purchased a large shed that are placed in the garden and it has been fitted out electrically and also with shelving for files. It is more like 2 sheds than one about the size of a reasonable sitting room. Is there any way that CAs can be claimed?
Michael Barron


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05th Aug 2002 11:29

Mr Foley

Contentious, yes.
It started out quite gently. My first answer included a reference to Arthur Jackson, as you will see if you scroll back.

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31st Jul 2002 16:56

Big Picture
One thing which has not been commented on is the fact that other tax issues will come into play here. This is where employing an adviser with expertise in both construction and tax is important.

Will the benefits of claiming capital allowances outweigh the implications on Capital Gains Tax and VAT?

Will it justify the extra time spent on completing your self assessment?

A good adviser will always provide his/her client with a 360 degree view of the situation.

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31st Jul 2002 17:32

With all due respect, Mr Gallagher, that is a little off track.

I and other respondents on this board do our best to answer people's questions, usually briefly because we do not have time to give a detailed view. Sometimes we add a few tips but no way can an answer in this forum be expected to cover the 360 degrees that you mention.

This is not a client. This is a stranger seeking free advice from those who give it without pay in a generous spirit.

Do not condemn us for not giving a multi-page report covering all aspects of ths situation and reviewed by another partner. That is not the name of the game.

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01st Aug 2002 11:06

Mr Boud's point

If there is a qualifying trade being carried on then I would certainly claim IBAs, yes. However it is better to claim ordinary capital allowances on the parts that qualify (shelving, specialist electrical supplies etc) because relief under IBA rules takes a very long time.

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to paras007
26th Feb 2016 17:00


you cannot claim IBAs on an office
 nor on a building or structure to which the general public are not excluded



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30th Jul 2002 13:21

Like Arthur Jackson

It rather depends on whether the client uses the shed as an office, workshop, warehouse or whatever, and whether he/she is a schedule D taxpayer.

If he/she is a musician and uses it for composing symphonies etc then you could have a problem on the basis that it is part of the setting. If it is used to store equipment that is used in a trade then you may have a better case.

We need more details of what the client does and what the shed is actually used for.

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By barron
30th Jul 2002 14:43

Capital allowances shed
How stupid not to say what shed used for! Yes it is used as an office in the course of the client's business. Computers/copiers/phones are all installed.
Thanks for replies

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30th Jul 2002 15:16

Plant & Machinery Allowances
As long as it is being used for the purposes of the client's trade he/she should be able to claim capital allowances for expenditure on plant & machinery. The shelving and items of office furniture should definitely qualify. The electrical installation is a more complex matter. Its qualification may depend, amongst other things, on which items the electrical supply is serving.

The "setting" issue may be a bit of a red herring in this instance as one does not expect a shed to have an electricity supply as standard in the same way as one might office premises.

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30th Jul 2002 16:11

Just to add to Mr Gallagher's comments...
I can only agree with Mr Gallagher.

You should claim capital allowances on everything except the shed itself. The shed is the setting; everything else is arguably plant, with the exception of the principal light fitting.

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01st Aug 2002 11:03

What the...?
Mr Gallagher

Will you please tell me exactly where in my posts there is any justification for you accusing me of seeking free advertising? When you fail to do so, can I expect an apology?

I suggest, Sir, with all due respect, that you follow your own advice and stay within the spirit of the site.

I also suggest that, if you use quotation marks, you learn to put inside them only what people have said and not what you imagine they have said.

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01st Aug 2002 10:59

Sore point?
Dear Mr Rees

Please try to stay within the spirit of this site.

You need to decide whether the site is here to post professional advice or as an excuse for free advertising ("multi-page document", "checked by partner", etc).

I think you need to accept the point that people seeking guidance here, whether clients or not, are quite capable of finding suitably qualified capital allowances experts without bandying company names right, left and centre.

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