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Improvement to personal property

Need to explain to my client why they can't claim the expenses for building a swimming pool

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I have a client who wants to build a swimming pool in their home back garden. To generate some extra income they are looking into renting it out to swimming instructor businesses.

I am advising my client that the cost of building the swimming pool is not allowable. But once it is up and running the income and associated pool costs (apportioned at a reasonable business % usage) can be netted off and declared as income from land and property.

Can anyone point me in the direction of these particular HMRC rules / legislation please? I'd like to share this with my client alongside my advice.

Many thanks

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paddle steamer
By DJKL
12th Feb 2021 12:41

Remember he will be able to relieve against income the extra liability insurance he needs to take out re these third party users, also the costs getting the agreement of the the local authority for the change of use from pool as part of the dwelling to pool being used for commercial purposes , if required, will be capital- I presume he has considered all the legal, safeguarding and protection of minors & vulnerable people issues etc, if not a chat with a solicitor, planning consultant and an insurance broker might be advisable. (Also, will water continue as a domestic supply? Up here our water is included within our Council Tax but if a commercial use is that still appropriate?)

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Replying to DJKL:
RLI
By lionofludesch
12th Feb 2021 23:17

DJKL wrote:

Remember he will be able to relieve against income the extra liability insurance he needs to take out re these third party users, also the costs getting the agreement of the the local authority for the change of use from pool as part of the dwelling to pool being used for commercial purposes , if required, will be capital- I presume he has considered all the legal, safeguarding and protection of minors & vulnerable people issues etc, if not a chat with a solicitor, planning consultant and an insurance broker might be advisable. (Also, will water continue as a domestic supply? Up here our water is included within our Council Tax but if a commercial use is that still appropriate?)

Water's about £5 a tonne in Yorkshire.

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By Paul Crowley
12th Feb 2021 13:10

I am not sure that insurance would be the death knell of that idea, but certainly needs sorting.

How many swimming instructors want a class with no changing facilities? Operated from a house. Child protection issues?

Would it be that the swimming instructors pick this environment because they are no longer permitted to book council swimming facilities

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By Wanderer
12th Feb 2021 13:20

Just tell them to stop being so silly!

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Psycho
By Wilson Philips
12th Feb 2021 13:30

An idea that should have been drowned at birth

Thanks (7)
By ireallyshouldknowthisbut
12th Feb 2021 13:40

Stock phrase no.78, "your private life is not tax deductible"

Thanks (4)
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By lesley.barnes
12th Feb 2021 14:15

www.gov.uk/hmrc-internal-manuals/capital-allowances-manual/ca22060

Lets be honest its for the clients personal use, renting it out for swimming lessons will be a non - starter. The risks that others have pointed out are too great. Even if he managed to get it passed by all the authorities the UK weather would limit its use. I'm assuming he isn't putting up a building to house the pool/changing facilities in which case there is loads of info on buildings in gardens which should cover it off.

Thanks (3)
Alex
By scurlage
13th Feb 2021 21:56

The clinet prob has no intention of ever renting it out. The clinet has not got a grasp of capital expenditure. The client thinks that by telling you some **** and bull story about swimming lessons you will tell him the cost of building it will come off his or her tax bill.

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Replying to scurlage:
Red Leader
By Red Leader
15th Feb 2021 12:18

My thoughts exactly.

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By johnjenkins
15th Feb 2021 10:29

I have a client who has already done this and prior to covid was doing well.
To me there is no difference to a smallholding renting out land for horses and charging for horse riding lessons.
As long as you look at the legalities (insurance etc. as previously mentioned) and any CGT (there might be a case for splitting the deeds) I can't see a problem.

Thanks (1)
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By FCExtraordinaire
15th Feb 2021 13:26

I am pretty sure that running a business like this from home will need permission from their local council (it does in most areas) which I would like to see before saying is an allowable cost. If they have avoided this, it's probably personal use.

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A Putey FACA
By Arthur Putey
15th Feb 2021 13:38

They're not a formerly well known TV entertainer by any chance?

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