Building a workshop and reclaiming tax

[donttellDH]

On behalf of my friend.

Friend is self employed as a gardner/landscaper and has been branching out into making wooden furniture when he has quiet periods (which he has not much of atm). He needs more space to store his large tools, and also to be able to make his furniture.

Can he reclaim the tax back on building a large workshop to accomodate the expansion of his business in his garden? (obviously subject to the normal planning permissions required), as he is registered self employed?

Very complicated, best to talk to an accountant who should run through the following things:

Is the proposed building in an Enterprise Zone??

Can any of the expenditure be identified as 'plant and machinery'? This expenditure may qualify for a Writing Down Allowance of 25%.

Can any of the expenditure be identified as 'integral features'? (this includes heating, plumbing and electrical systems so the answer is probably yes). This expenditure may qualify for a Writing Down Allowance of 10%.

Is the proposed building to be used for a 'qualifying purpose'? Making wooden furniture for sale is a qualifying purpose, storage for a gardening/landscaping service is not. Additional rules apply where there is a mix. This expenditure may qualify for Industrial Buildings Allowance, although this is being phased out and you can only claim 2% this year and 1% next year.

oh it is complicated isn't it? i shall print this off for him thank you!