CGT

System

Hi there

I wanted some clarification on capital gains.

My client has a purpose built 'workshop' at the bottom of his garden which he calls a shed (brick build with it's own source of electricity). Can anyone advise me as to whether this is subject to CGT when they sell. I have told it could be and I will look into it.

Also he has a van which has been adapted with seats in the back for the kids as he does the school run. Which I told him is private use.

He is my first client (just starting up) and so I want to be completely straight.

Where do you all get specific advice from? I want to show him proof as his previous accountant was his Mother In Law so don't want to go back on her word but want to be sure in my mind.

Hope that makes sense.

Thanks in advance

Laura

System

Re:CGT

Hello

I was hoping that someone else would have responded to this by now!
I would say that the workshop will only be chargeble to CGT if it is used exclusively for business use. Therefore if he can stick a telly in there & let the kids use it in the evenings/weekends then he should escape any CGT charge, but it will of course limit the proportion of household bills that can be claimed as expenses.

As far as the van goes I'm not sure what you're asking - do you need to know whether it's a van or a car for capital allowances? if so VAT notice 700/64 explains the difference for VAT purposes, but I'm not sure if the same rules apply for capital allowances.

If I were you I'd phone the AAT technical helpline to make sure you're getting it right.

Good Luck!

Jodie