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VAT / Cap Allowances Claim

VAT / Cap Allowances Claim

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Existing client is setting up a Wedding Venue using an unused foldyard on his fathers working farm. Forecast spend is around £ 60,000 consisting mainly of a temporary Marquee - £ 25,000 plus VAT & £ 33,000 plus VAT for "Landscaping ".

Wishes to claim all VAT paid as Capital Assets & claim all as P & Mach. Have no major issues with the Marquee but in respect of the landscaping have told him we need to be careful as it is permanent work done to part of a Property which he does not own ! It is of a nature ( posh trees/ plants etc) incapable of being "moved".

Have not encountered this situation before so any pointers would be greatly appreciated - maybe being too cautious here but I wish to get this correct from the outset !

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By Portia Nina Levin
23rd Nov 2015 15:39

I do not see much prospect of claiming capital allowances. You have works to land, which are excluded and a big tent that appears to be the proposed setting for the activity (see Benson's Yard Arm).

I do not see any problem with claiming the VAT in this scenario though.

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By [email protected]
17th Dec 2015 16:29

Don't forget the gazebo case


I would not be so quick to follow the Benson Yard Arm case.

For instance there is the Gazebo case allowing a smoking shelter as P&M, however, that will depend on the moveable nature of the marquee - presumably it is moveable, and indeed may be moved in the future!

For the landscaping, there is the potential to argue the alteration of the land to install plant and machinery (item22 of List C) to the extent that the landscaping relates to the levelling of the ground for the marquee. Also there are the principles set out in Anchor International to consider.

Unfortunately any planting is unlikely to be eligible for P&M!


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