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Capitalise all items

Soundproof studio

Hi all,

a client of mine has built a sound studio within a leasehold building. So they rent a huge space - within that space they have built 3 walls one with a door way (to provide double insulation) and those walls have all been made sound proofed and they have soundproofed and covered an existing wall so that theycan have a recording studio within it.

I understand that normally that the partition walls would not qualify for any capital allowances as they are a leasehold improvement (and not removable) however on the basis that the walls have been built soundproofed to contain a sound proof recording studio there seems to be some allowances to claim.

The Sound insulation provided to meet the particular requirements of the qualifying activity should recieve capital allowances as plant and machinery but would the actual additional costs of making the wall - i.e. the wooden frames/the doors/the screws/plasterboard etc? I know ordinarily they would not be but given that the sound insulation cannot be freestanding is there a possibility of claiming the additional costs as p&m in that they provide the "sound proofing" as a whole?

Many thanks

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24th Sep 2018 19:28

Good article by Nichola Ross Martin covering similar expenditure here: https://www.rossmartin.co.uk/sme-tax-news/848-capital-allowances-case-pl...

In particular, B & E Security Systems Ltd v HMRC TC00452 [2010] UKFTT 146 TC where the construction works were all found to be alterations incidental to the installation of plant.

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By PALacc
to the_drookit_dug
24th Sep 2018 19:41

Thank you so much - that is exactly the type of reference I have been looking for but could not find so I appreciate the help
Many thanks

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