Land drainage and tax...

[mo!]

Looking to do a bit of drainage this year and I'm trying to find some real world advice on the tax situation.

I don't know of any existing systems in the land, so do I have to treat it as capital works? I can't see that the Tax man is going to come and check so can I write it off as repairs? There'll be an odd horseshoe in there somewhere....

 

[Wooly]

Invoice as drainage repairs then 100% tax efficient!

 

[Lincsman]

If you can dont do the whole lot as a full scheme as it will be a new scheme, doing parts of the field where the "old" drains have failed would be better, even if the rest fail next year!

 

[Forever Fendt]

Looking to do a bit of drainage this year and I'm trying to find some real world advice on the tax situation.

I don't know of any existing systems in the land, so do I have to treat it as capital works? I can't see that the Tax man is going to come and check so can I write it off as repairs? There'll be an odd horseshoe in there somewhere....

go for it

 

[Fish]

Repairs,
I think when you start digging you will be surprise what you find.

 

[Will Blackburn]

Do you think HMRC are going to investigate this one, there are lower hanging fruit than this.

 

[horizontal]

NO to repairs unless there is an existing drainage system in the field(s) concerned, and dont think there is any capital allowance on new works. I have been advised HMRC have investigated this in the recent past. Evidence of existing drainage may be required. Suggest you tread extremely carefully.