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Kennels and dog breeder

I've looked at Carr V Sayer

Didn't find your answer?

My opinion is claimable (subject to clarification from the client) but I'd appreciate a second opinion.

Self-employed dog breeder has had kennels built at a total cost of £4,900. There are no other activities, and the dogs are either stock for sale, or breeding stock. With regards to breeding stock, herd basis will be allowable.

Obviously, for pups the sale is not immediate, and kennelling until they are old enough for sale is necessary.

At the cost given, I can't image that the kennels are a permament fixture, though I'm seeking clarification on this.

Sayer tended to take the quarantine issue into account, which is of no relevance here. So, are CAs available on the kennels (subject to them not being permanent fixtures)?

 

EDIT: Additional information: The kennels are built on a concrete base, which is permament, but the kennels themselves are removable. Does this mean I need to separate out the costs of the base from the kennels (assuming that CAs are available)?

 

Replies (4)

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By Tax Dragon
07th Jan 2021 17:19

Your view is consistent with what I have read.

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By Wanderer
07th Jan 2021 17:48

Regarding your edit have you read around the provisions for expenditure preparatory or properly incidental to the installation of an asset?

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Replying to Wanderer:
By SteveHa
11th Jan 2021 14:34

I haven't yet, but I'm awaiting the full breakdown of costs from the client, so will do then. As long as consensus is that I'm broadly correct.

Thanks, both.

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By Dib
11th Jan 2021 16:54

I can see that CAs should be claimable if the kennels are not permanent fixtures. What this means is not that the kennels are removable but that they are moveable and are in fact moved in the course of the trade (cf Jarrold v John Good). If the kennels are sat on concrete bases and are never actually moved then I don't think CAs are available.

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