Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration
Home Saved articles Viewed items Login Contact Free Trial
|

H2 hole

© Copyright LexisNexis 2024. All rights reserved.

05 August 2014
Issue: 4463 / Categories: Forum & Feedback , Business , Capital allowances

Are capital allowances claimable in respect of a water borehole?

A farming company operates from land owned personally by two of the directors. The company currently has several hundred head of cows and is expanding its herd. The water bill to feed these animals is substantial and the company has decided to sink a borehole on the land owned by the directors.

Presumably the cost of the pumps water tanks filtration system etc will all qualify for annual investment allowance. However we are wondering whether the borehole itself will be classed as plant or will it be deemed an enhancement to the land value.

On the other hand the plant and machinery to extract and purify the water can have no function without the borehole being sunk. Consequently could it be classed altogether as one piece of plant and machinery and therefore qualify for annual investment allowance?

Query 18 431 – Diviner

Reply...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

READERS' FORUM premium icon
Read All
Readers forum: Claiming pre-registration input tax Practice tip: 19 December 2024 New Queries: 19 December 2024 Readers’ forum: Should I advise my client to declare income? Readers’ forum: Pension scheme set up as discretionary trust?
FIVE WAYS TO MAKE ACCOUNTS PRODUCTION AND TAX EASIER.
Download the exclusive Xero
free report here.

New queries
Please email any questions you might have
to: taxation@lexisnexis.co.uk.

NEWS premium icon
Read All
Automated tracking system for taxpayers could save £36m a year, study shows Welsh income tax rates are unchanged Business expenditure on R&D rises in 2023 HMRC targets landlords who may have undeclared rents Lump sums cannot be returned to pension scheme
DEADLINE DATES
CASES premium icon
Read All
No extenuating circumstances to extend deadline Delay in issuing penalties was no excuse for late return Sales of occupation income avoidance rules apply Whole of settlement was not subject to tax Payments were taxable as earnings
MOST POPULAR
Readers forum: Claiming pre-registration input tax No extenuating circumstances to extend deadline This week's opinion: 19 December 2024 Automated tracking system for taxpayers could save £36m a year, study shows Welsh income tax rates are unchanged
Copyright © 2024 LexisNexis
back to top icon