Is it a building?
KaelaH
Registered Posts: 131 Dedicated contributor 🦉
I have a client that has a business in the Open Market locally, I would say a stall except that they're not anymore. Each "stall" at this market is actually a small unit. The traders are given a framework which has metal shutters but they have to fit it out how they want. My client runs a hairdressing business from this so has fitted out the inside with plasterboard walls and flooring.
I am trying to figure out whether these walls and flooring are to be counted as buildings or as plant or machinery. I keep looking through the legislation and can't quite make head nor tail of it.
My first thought is that they are a building but then it is a temporary structure. The flooring would appear to be a cost counted as buildings but what about the partition walls?
If they are to be treated as a building am I right in saying that the capital expenditure is just this, and no allowances can be claimed?
I am trying to figure out whether these walls and flooring are to be counted as buildings or as plant or machinery. I keep looking through the legislation and can't quite make head nor tail of it.
My first thought is that they are a building but then it is a temporary structure. The flooring would appear to be a cost counted as buildings but what about the partition walls?
If they are to be treated as a building am I right in saying that the capital expenditure is just this, and no allowances can be claimed?
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Does the client rent the stall? If so I would of said all the costs are just repairs & renewals. They don't own the 'building' and the walls etc can't easily be taken when they go.0
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Yes, they rent the stall. I'm not sure what would happen if they left, I'm guessing they'd have to return it to its original state.0
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I believe (though in light of the renting comments above this might be a moot point) that the rule on Plant & Machinery is that it must be a tangible item which carries out a function in your business, as opposed to providing a setting in which you carry on that business so, renting issue aside, it'd be a building in my view.0
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Thanks, I think i'll run with it as a building, better be safe than sorry. I have been through the legislation several times and just can't seem to see how it can be P&M or revenue - nothing really covers what it is except for the buildings, altho with it being temporary its thrown a spanner in the works0
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It is a tricky area - I looked into it years ago when a client of mine moved into a rented building (which is actually a building, not a temp structure) and they paid about £500 putting up internal walls etc and really there didn't seem to be any relief for these kind of costs except if they were to sell the business as a going concern, in which case (over-optimistically speaking) it could lower the amount of CGT payable.0
