mark perego
Member
- Location
- in a river
whats the tax relief on building a new shed? Before the end of May I have 30k of taxable profit..
Tax relief on new shed
- Thread starter mark perego
- Start date
mark perego
Member
- Location
- in a river
Thought so! What about replacing a delapidated Dutch barn?
Yes,you can class that as repairs,just take some photos for proof there was a shed there before.
mark perego
Member
- Location
- in a river
Thanks,didn't fancy spending on a few machines.will speak to the accountant tomorrow
Goweresque
Member
- Location
- North Wilts
Not according to my accountant you can't. You can return an existing shed to an as new condition (ie put a new roof on a dutch barn, have any rusty steel replaced & painted) but you can't knock down an old shed and put up a new one and claim repairs, even if the new shed is exactly the same size as the old one.
https://whitehall-admin.production....t_data/file/355656/draft-guidance-repairs.pdf
Note what it says on page 5: "replacing the whole or the 'entirety' of an asset is not a repair it is capital expenditure and not an allowable expense."
I think you need a more creative accountant...
ridger
Member
- Location
- Tyrone, Northern Ireland
You can't have a heap of new tin and iron sitting about rusting, best repair it up into something useful
- Location
- Newcastle upon Tyne
Replace it a bit at a time.....then you are repairing it!!
Goweresque
Member
- Location
- North Wilts
Its not the accountant who signs the tax return though is it? Your accountant can be as 'creative' on your return as you tell him to (though do bear in mind your accountant now has a statutory duty to report you to HMRC if he even suspects you to be evading tax), but its you who signs on the dotted line saying its all kosher.
I just prefer not to sign my name to things I know aren't true. All very boy scout and squaresville I know, but I sleep sounder at night as a result.
- Location
- East yorks
Seems daft really, when I can blow a very large chunk of money on an imported tractor and get 100% relief yet I cannot get anything on a building most of which is made in the UK.
Geordielass
Member
You can send your profit my way and call it sponsorship or something to that effect ?
- Location
- Near Colchester
Even the tax relief on new machinery doesn't save you anything in the medium or long term as the depreciation is added to your taxable income in subsequent years and you have no capital allowance left to set against it as you used all that up in year 1.
The Sheriff of Nottingham is like weasel poo - in everything
The Sheriff of Nottingham is like weasel poo - in everything
Athlete's Foot
Member
- Location
- Midlands
Capital allowances have been the bane of my life now ever since I started my business 30 years ago. The days have long since gone when farmers would buy a new combine every other year to reduce their tax. The 100% policy was great for all, except the revenue. Farmers were using the most efficient combines in production at the time, their tractors were just the same. Investment was everywhere, and not just in agriculture. Factories invested in state of the art machines, production was world class. Then along came Maggie Thatcher the Tax Snatcher. Almost overnight she ended investment. Why should a nurseryman buy a greenhouse with all the hassle and hard work that comes with it when a German car gave him more tax relief and was a pleasure to drive. It was a no brainer and so the country stopped investing and has done so for over 30 years. Gordon Brown, remember him? Mr Prudent, well he took away our last miserly Agricultural Buildings allowance of just 4%. Very kind of him. Then in his last few months in office he gave us a small window of opportunity to invest £100K, in equipment only. Too late Mr Brown there was bugger all profit left in small business to spend. In came Mr Osbourne, he thought £100k was too generous and so reduced it back to £25k and then from nowhere in the space of 6 months he increased it to £250k and now again to £500K, talk about confusion. His generosity runs out at the end of this year and he is unable or unwilling to tell us what lies around the corner. Of course, brain dead that they are down there in the Smoke, he has not in his wisdom seen fit to allow us to use this relief on buildings, only equipment. I still can't see the sense in that, but who am I but a mere mortal. I have argued with several MPs about these ridiculous rules and not one of them understood it, not one. The last one, who remains anonymous to save his chances in this election, told me I was wrong and that I should get a good accountant. He was one of those MPs that was in the press for the expenses fiasco.
My advice to you @mark perego is to build your building of specialist materials wherever you can that are only fit for the purpose of which the building is intended. What do I mean by this? Well if it is a cattle shed for example, then all of the gates, barriers, troughs are equipment and can be used against tax. The concrete, steelwork etc are buildings and cant, but ramp up your costs on equipment. The system is forcing you to be bent, but when the rules are written my those that fiddle their expenses what else should you do?
My advice to you @mark perego is to build your building of specialist materials wherever you can that are only fit for the purpose of which the building is intended. What do I mean by this? Well if it is a cattle shed for example, then all of the gates, barriers, troughs are equipment and can be used against tax. The concrete, steelwork etc are buildings and cant, but ramp up your costs on equipment. The system is forcing you to be bent, but when the rules are written my those that fiddle their expenses what else should you do?
mark perego
Member
- Location
- in a river
Well said
I agree with the above,but take it even further,if it is a kit building that is bolted down,it could be removed right? If so it is plant and machinery ie not fixed equipment,same with the bolt on concrete panels.This is a tough enough business without tying yourself up in knots trying to appease bean counters,this is a grey area take advantage of it.
- Location
- Montgomeryshire
Removable grain walling (concrete panels) and repairs to that broken, existing concrete floor/yard are legitimate expenses, as is the cost of erection. As long as you don't use mass concrete or block walls, you should be able to justifiably argue most away as legitimate expenses, everything apart from the actual shed structure.
New concrete,block walls or mass concrete walls are just about the only things you cant claim IMO,even the shed frame if its bolted down can be moved.
- Location
- Bedfordshire
It's probably not a grey area in their eyes, it is a building with a wall.