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Heavy plant

29 August 2007
Issue: 4123 / Categories: Forum & Feedback

A owns an item of heavy plant and hires out his own labour and machine on a weekly basis. His contracts take him all over the country, for periods ranging from one month to nine months, travelling home only for weekends. He has previously taken accommodation in a local caravan park or other low-cost accommodation near the site, the cost of which has been claimed through his accounts. He has now purchased a caravan for use in the business, which he takes to the various construction sites, to stay in whilst working.

A owns an item of heavy plant and hires out his own labour and machine on a weekly basis. His contracts take him all over the country for periods ranging from one month to nine months travelling home only for weekends. He has previously taken accommodation in a local caravan park or other low-cost accommodation near the site the cost of which has been claimed through his accounts. He has now purchased a caravan for use in the business which he takes to the various construction sites to stay in whilst working.
Can tax relief be claimed by our client on the cost (£5 000) of purchasing the caravan?
Readers' thoughts would be helpful.
Query T17 066 – Triff.


Reply by Magnus:

One assumes first of all that the taxpayer operating the plant and hiring out his own labour is...

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