Tax allowances for building replacement?

[Wombat]

Its the one thing i think is wrong, you can spend capital allowance on a german tractor but cannot spend it on a british build shed.

 

[Tarw Coch]

Its the one thing i think is wrong, you can spend capital allowance on a german tractor but cannot spend it on a british build shed.

Completely agree, I think you'd struggle to find anyone who wouldn't, but that's not how it is. Why I don't know, I'd certainly be interested to hear HMRC,s logic/justification.

IIRC when HMRC removed tax relief on new buildings approx 15 years ago the NFU did argue against it ...........but may well not have used the argument of why is it ok on foreign machinery but not British sheds as that might just have left us worse off still. Although I'm sure under EU rules they wouldn't have been able to discriminate against EU built machinery.

Bottom line, they were probably just looking to increase Tax income some how/anyhow and logic had little to do with it, they did it because they could.

 

[chipchap]

It must be wrong that you cannot now claim depreciation on farm buildings, nor claim an allowance when that shed is replaced completely when it is knackered?

 

[Pond digger]

Completely agree, I think you'd struggle to find anyone who wouldn't, but that's not how it is. Why I don't know, I'd certainly be interested to hear HMRC,s logic/justification.

IIRC when HMRC removed tax relief on new buildings approx 15 years ago the NFU did argue against it ...........but may well not have used the argument of why is it ok on foreign machinery but not British sheds as that might just have left us worse off still. Although I'm sure under EU rules they wouldn't have been able to discriminate against EU built machinery.

Bottom line, they were probably just looking to increase Tax income some how/anyhow and logic had little to do with it, they did it because they could.

It's symptamatic of what's wrong with the country- short term gain, rather than long term investment.

 

[Punch]

Would the old investment 'shed' be capital loss when scrapped? So in 10 or 20 years when these newer sheds are scrapped may get a benefit?
Does that make sense?

 

[rusty]

Completely agree, I think you'd struggle to find anyone who wouldn't, but that's not how it is. Why I don't know, I'd certainly be interested to hear HMRC,s logic/justification.

IIRC when HMRC removed tax relief on new buildings approx 15 years ago the NFU did argue against it ...........but may well not have used the argument of why is it ok on foreign machinery but not British sheds as that might just have left us worse off still. Although I'm sure under EU rules they wouldn't have been able to discriminate against EU built machinery.

Bottom line, they were probably just looking to increase Tax income some how/anyhow and logic had little to do with it, they did it because they could.

We wrote to our M.P. about this as we had spent about 400k over the previous 3 years on 2 large cattle buildings and out of nowhere we lost all the tax relief on them. He forwarded our complaint onto the relevant labour minister who sent a reply back showing he completely misunderstood our complaint and its relevance.

 

[mx110]

I've just put a new shed up replacing 3 old redundant dilapidated ones. But just wondering to myself would the cost of site clearance, (asbestos removal) etc be classed as new build or would there be some allowance on this.

 

[Nearly]

Sounds like a comprehensive repair to me.

 

[Nearly]

If you took 3 sheds down you've made a capital dis-investment which should offset the investment in the 'new' shed.
Sounds like a repair to me.

 

[Lincsman]

If you took 3 sheds down you've made a capital dis-investment which should offset the investment in the 'new' shed.
Sounds like a repair to me.

Not the tax man though.

 

[Nearly]

Its the one thing i think is wrong, you can spend capital allowance on a german tractor but cannot spend it on a british build shed.

But shed builders are all busy so it's not going to be changed.
CE marking with build specific for postcode just another way of gps tracking our activities.