Readers' forum : In the studio

28 June 2016

Issue: 4556 / Categories: Forum & Feedback

Is annual investment allowance claimable on studio costs of a freelance musician?

My client is a freelance classical musician who has purchased a practice studio for his garden. The cost was £20 000 including installation. He has advised me that plans to install air conditioning in the studio and that this will cost a further £1 400. He has confirmed that the studio will only be used by him for music practice.

My thoughts are that I am happy to claim the cost of the studio and in due course the air conditioning as an annual investment allowance. The client has no intention of ever moving home so I am assuming that there are no potential capital gains tax liabilities on the horizon. His children are young so I cannot see any problems. I should be pleased to hear readers’ responses on this matter and of any tax planning points that might be relevant.

Query 18 801– Music Man.

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