The client has a piece of land for which he has just been awarded planning permission to use it for raising goats. Other uses for the land may follow. The planning permission has multiplied the value of the land by 4 or 5, leaving an unrealised capital gain of £137,000. The land is a couple of fields away from the nearest road, and there are no main services on site, nor plans to bring them in.
Before he can do this, he has to improve the land by putting up sheds, fences etc, and a home for himself. He has to live on site, because livestock might need attention at any time. To comply with the planning permission, the "home" has to be capable of being dismantled and taken away after 4 years. Such buildings exist, and the client has identified a suitable one. The client is single and lives alone, and has simple needs - he says he can manage without mains services.
Of course, this all raises various issues, but the main one right now is that he says the project will not be affordable if he can't reclaim the input VAT on the improvements. One possibility I've been wondering about is whether the improvements can be reasonably classed as Plant & Equipment.
I would appreciate any thoughts.