I'm just trying to work out whether an agricultural building (in kit form!) qualifies for a capital allowance. I would have considered it would but certain things I'm reading suggest maybe it doesn't.
Any ideas?
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Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
it used to be that agricultural buildings had their own set of rules that went against normal tax practice (the ABA, Agricultural Buildings Allowance). Unfortunately that was phased out in 2011 (the change itself was in FA2008) and now we are back to the normal rules for structures (no capital allowances).
Just doing normal searches of the net you will come accross a lot of old sites that talk about the ABA which is possibly why you thought that they would be allowable.
Sorry, its now the same rules for Agricultural buildings as industrial buildings so very much a case of anything that can be identified as plant is seperated out to maximise the tax benefit but appart from that I'm afraid that its not good news and there are no capital allowances available for structures.
kindest regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Some things that are generally considered structures in other businesses on a farm may be deemed as plant. For example pig arks that can be moved or non permanent chicken coupes are both plant.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thanks for your reply. The building is to house sheep so is an obvious structure even though it came in kit form it will be concreted in as to be permanent.
Would you consider as it is not a capital expense it would then be a general expense, it does seem harsh to have £9,000 non claimable. The farm is not owned so it cannot even be put against eventual CGT.
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Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
no, it's a structure recognised on the balance sheet, not through the P&L (so not recognised for tax purposes).
if they move from the farm and the building remains then that would need to be removed from the books as a disposal so there would be an allowable loss (reduced by anything that they receive for the building from the owners of the farm (probably nothing)).
They are not losing their £9k, they are just not getting the up front capital allowances for it.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
