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Capital or revenue - thoughts please

Renewal of children's play surface

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Client is children's day nursery & they have paid a significant sum to have the playground (in much need of repair) dug up and astroturf laid.

They had an outdoor play surface before and now they still have an outdoor play surface - arguably an improvement and more suitable as there should be less bumps and bruises, but never the less still providing the same functionality.

Am pondering if this is capital or revenue expense. Any thoughts please? 

 

Replies (6)

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By the_drookit_dug
03rd Jan 2021 11:26

You've not given us much to go on, but I'm guessing it wasn't an astroturf surface beforehand. I reckon it's capital, but that's based on limited info.

This post from June 2020 re a tennis court may be helpful: https://www.accountingweb.co.uk/any-answers/tax-relief-or-not

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Replying to the_drookit_dug:
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By tltodman
03rd Jan 2021 11:40

Thanks for that - and a helpful link (more head scratching). Sorry - previously it was an old school/conventional tarmac/concrete hard playground not astroturf and not the soft spongy type you get in local parks these days

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Replying to tltodman:
RLI
By lionofludesch
03rd Jan 2021 11:48

"Upgraded to modern standards" ?

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By Wanderer
03rd Jan 2021 11:58

Is the comparison to a tennis court surface the correct one to make? A tennis court surface becomes part of the premises.
Isn't it more like a carpet or football pitch AstroTurf and possibly capital but qualifying for CA's?
Have a read of this:-
https://www.gov.uk/hmrc-internal-manuals/capital-allowances-manual/ca21260

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By Paul Crowley
03rd Jan 2021 15:02

I would consider the tax relief to be be the desired outcome.
If small enough to be a repair?
But also does the new surface satisfy as plant for the trade?
Real life says to me that it could be a health and safety requirement

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By CJaneH
04th Jan 2021 10:35

I am not sure whether capital or revenue but I would point out that the carpet/astroturf at tennis clubs has a life of about 6 years before being taken up and replaced.

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