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If I build a garden office - what is tax treatment?

FredE
Posts: 1
Joined: Mon Feb 12, 2018 11:26 pm

If I build a garden office - what is tax treatment?

Postby FredE » Mon Feb 12, 2018 11:30 pm

I have made very good profits this year and want to build a garden office. There seems to be the advantage that I can reclaim the VAT but how is this treated in my accounts and corporation tax.is it an allowable expense or a capital investment/asset...or a mixture of both. Can it reduce my profits and so reduce my corporation tax?

wamstax
Posts: 1812
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
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Re: If I build a garden office - what is tax treatment?

Postby wamstax » Tue Feb 13, 2018 2:13 am

You need to consult a good tax adviser as I note that you appear to be trading through a company and creating a building in what I assume is your privately owned garden could confer personal taxable benefits in kind on you irrespective of any potential (unlikely though) for mitigation of company corporation tax. It could also jeopardise your garden ground being treated as part of the main residence for personal CGT if you ever dispose of the property
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

Tom7000
Posts: 55
Joined: Wed Aug 06, 2008 3:30 pm

Re: If I build a garden office - what is tax treatment?

Postby Tom7000 » Thu Feb 22, 2018 3:08 pm

Mostly when I check the tax on this its not worth it. Your accountant should easily be able to tell you this.
I have a helpsheet that explains it if you want it. Email me help@ttca.co.uk

Tom
www.ttca.co.uk

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