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The garden office part 3: Business ownershipby
Some garden offices are intended to be used entirely for business and, if so, it’s worth exploring which costs of installation and construction the business can incur without creating tax problems.
Where the garden office pod is purely used for business there is likely to be a much greater desire to achieve the maximum tax benefits for the business.
Structures and Buildings Allowances
Could there be any reliefs for the structure itself if it’s owned by the business?
A garden pod in and of itself falls within the category of a structure for the structures and buildings allowance (SBA) introduced in October 2018. This allows relief at 3% per year on a straight-line basis on the costs of the construction of non-residential buildings.
However, SBAs are not intended for buildings with residential use. In HMRC’s original technical note from 2018, it stated that “no relief will be provided for work spaces within domestic settings, such as home-offices”. Subsequently, in June 2019, the Government noted that legislation would be introduced to clarify that assets within the curtilage of a residential structure or building would also be excluded.
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Helen Thornley has a focus on personal and capital taxes. Initially training as an accountant before moving to tax, she worked in practice until her appointment as a technical officer in 2017. She also has an interest in the history of tax.