Question:
I built a kennels in my back garden and last year I put the costs for this through as expenses to the business (I did my own tax return). The things I put through were the hard-core and labour to build the foundations as well as the kennels themselves. I believe the kennels will be an asset. Can I claim any capital allowances to offset the cost?
Arthur Weller replies:
It seems to me that you are in the business of looking after dogs - since you built kennels for your business. In my opinion, this is capital expenditure, and you should not have put the costs through as business expenses last year. Furthermore, this is not ‘plant and machinery’ on which you can claim capital allowances - see www.hmrc.gov.uk/manuals/camanual/CA22110.htm. The reason is because this is a built-in structure.
