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Where Taxpayers and Advisers Meet

LANDFILL SITE - CAPEX AND CT RELIEFS

Anthony Evans
Posts:1
Joined:Thu Apr 30, 2015 7:28 pm
LANDFILL SITE - CAPEX AND CT RELIEFS

Postby Anthony Evans » Sat Jan 02, 2016 12:07 pm

A company owns and operates the leasehold to a landfill site dealing with inert materials through a private limited company (Company A) and the landfill sits on a farm site which is owned by a farmer.

My question is, that the limited company has been charged in the region of £100,000 for 'Landscape improvement costs' which essentially appears to be site preparation works of a capital nature. The landfill site is expected to operate for around 3-4 years dependent on volume. At this moment, I am unable to accurately assess what capacity of the site remained unused for the year in question, or even gauge the scope of the capital works as they were undertaken by the landowner who has simply annotated the works as 'landscape/landfill works'.

I would normally refer to s.145 CTA 2009 and anticipate that this expenditure would be subject to tax relief however, the limited company does not hold the permit for the tipping site, this is held by another company (Company B).

Company B charges the end user for tipping and Company A makes a charge to Company B before passing on monies to the farmer (based on weight deposited at the site).

As Company A does not hold the permit and is almost just a conduit for holding the leasehold, does this restrict any entitlement to tax relief in anyone else's opinion. I was hoping that capital allowances would be available on the expenditure, but I fear that the structuring of the transactions may preclude this?

Thanks

Ant

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