Planning Permission with Asset Not Owned by Client

Caspar1

I realise I have just posted this under the Students Discussion forum, so have copied it to here.

I have a client who's parent owns a field. The client has a dog walking business and wants to use the field for dog training and dog walking, going forward. In the book keeping pack, I have received a card receipt from the council for planning permission (which the client states if for change of use of the field from agricultural to using it for dog walking etc).

I know that I need to delve further, but at this early stage, can anyone explain to me how planning permission works. For example, can this payment be classed as the clients expense, when the field is in someone else's name (albeit their parent). Where I would normally capitalise an expense such as this, as the client would never be selling the field, does it mean no capital allowance would ever be claimed anyway, so no point putting it through in the first place etc?

Thanks in advance.

MarieNoelle

Hi @Caspar1

I agree it is capital expenditure and no capital allowances may be claimed. And as you have pointed out, relief may only be obtained in an event of a sale.

Caspar1

Many thanks Marie Noelle. I won't be putting it through now, as she doesn't own the field so I don't really feel it is her expense, even though I know it is to facilitate her use of the field. It's good to have someone else confirm you are on the right lines.