Hi.

A sole trader business is preparing a planning application for, say, a
new restaurant and leisure facilities and incurs substantial costs in
terms of planning application fees, architects costs and other
professional fees.

I understand these fees are capital in nature and are not tax
deductible for income tax purposes. However, they are available for an
IBA claim or atleast until it is phased out. 

Hopefully my understanding so far is correct. In the event that the
planning application is refused there is no capital item and the claim
for IBA's would become disallowable. Is there any recourse for tax
relief otherwise where the capital investment has not been aborted
bythe sole trader.

Any help appreciated.

Paul

On 11 Jun, 12:20, Mushtie wrote:
> Hi.
>
> A sole trader business is preparing a planning application for, say, a
> new restaurant and leisure facilities and incurs substantial costs in
> terms of planning application fees, architects costs and other
> professional fees.
>
> I understand these fees are capital in nature and are not tax
> deductible for income tax purposes. However, they are available for an
> IBA claim or atleast until it is phased out.
>
> Hopefully my understanding so far is correct. In the event that the
> planning application is refused there is no capital item and the claim
> for IBA's would become disallowable. Is there any recourse for tax
> relief otherwise where the capital investment has not been aborted
> bythe sole trader.
>
> Any help appreciated.
>
> Paul

You don't get IBAs on restaurants. IBA stands for "Industrial
Buildings Allowance".

If the planning application is refused you wont be able to claim the
professional fees against IT or CGT.

Are any of the professional fees relating to the plant and machinery?

On Wed, 11 Jun 2008 08:17:49 -0700 (PDT), PeterSaxton
 wrote:

>On 11 Jun, 12:20, Mushtie wrote:
>> Hi.
>>
>> A sole trader business is preparing a planning application for, say, a
>> new restaurant and leisure facilities and incurs substantial costs in
>> terms of planning application fees, architects costs and other
>> professional fees.
>>
>> I understand these fees are capital in nature and are not tax
>> deductible for income tax purposes. However, they are available for an
>> IBA claim or atleast until it is phased out.
>>
>> Hopefully my understanding so far is correct. In the event that the
>> planning application is refused there is no capital item and the claim
>> for IBA's would become disallowable. Is there any recourse for tax
>> relief otherwise where the capital investment has not been aborted
>> bythe sole trader.
>>
>> Any help appreciated.
>>
>> Paul
>
>You don't get IBAs on restaurants. IBA stands for "Industrial
>Buildings Allowance".
>
>If the planning application is refused you wont be able to claim the
>professional fees against IT or CGT.
>
>Are any of the professional fees relating to the plant and machinery?
>
Actually its a hotel/restaurant/leisure building so presumably  it
would be available for Hotels Building Allowance. 

The professional fees include not only architects fees but also
landscaping architects,  structural engineering fees and mechanical &
electrical engineering  fees. The latter will encompass all aspects of
heating, ventilation, drainage, water supplies etc. Would it be
possible to claim an element of the latter as being in respect of
plant & machinery? If so, where would one start wiith identifying the
allocation?

On 12 Jun, 01:49, mushtie@yahoodotcom wrote:
> On Wed, 11 Jun 2008 08:17:49 -0700 (PDT), PeterSaxton
>
>
>
>
>
>  wrote:
> >On 11 Jun, 12:20, Mushtie wrote:
> >> Hi.
>
> >> A sole trader business is preparing a planning application for, say, a
> >> new restaurant and leisure facilities and incurs substantial costs in
> >> terms of planning application fees, architects costs and other
> >> professional fees.
>
> >> I understand these fees are capital in nature and are not tax
> >> deductible for income tax purposes. However, they are available for an
> >> IBA claim or atleast until it is phased out.
>
> >> Hopefully my understanding so far is correct. In the event that the
> >> planning application is refused there is no capital item and the claim
> >> for IBA's would become disallowable. Is there any recourse for tax
> >> relief otherwise where the capital investment has not been aborted
> >> bythe sole trader.
>
> >> Any help appreciated.
>
> >> Paul
>
> >You don't get IBAs on restaurants. IBA stands for "Industrial
> >Buildings Allowance".
>
> >If the planning application is refused you wont be able to claim the
> >professional fees against IT or CGT.
>
> >Are any of the professional fees relating to the plant and machinery?
>
> Actually its a hotel/restaurant/leisure building so presumably  it
> would be available for Hotels Building Allowance.
>
There's not "Hotels Building Allowance" - it's just that hotels
qualify for IBAs if they fall within the rules.

IBAs are being phased out.

> The professional fees include not only architects fees but also
> landscaping architects,  structural engineering fees and mechanical &
> electrical engineering  fees. The latter will encompass all aspects of
> heating, ventilation, drainage, water supplies etc. Would it be
> possible to claim an element of the latter as being in respect of
> plant & machinery? If so, where would one start wiith identifying the
> allocation?

Get the fee invoices split to identify them.

PeterSaxton wrote:
> On 12 Jun, 01:49, mushtie@yahoodotcom wrote:
>> On Wed, 11 Jun 2008 08:17:49 -0700 (PDT), PeterSaxton
>>
>>
>>
>>
>>
>>  wrote:
>>> On 11 Jun, 12:20, Mushtie wrote:
>>>> Hi.
>>
>>>> A sole trader business is preparing a planning application for,
>>>> say, a new restaurant and leisure facilities and incurs
>>>> substantial costs in terms of planning application fees,
>>>> architects costs and other professional fees.
>>
>>>> I understand these fees are capital in nature and are not tax
>>>> deductible for income tax purposes. However, they are available
>>>> for an IBA claim or atleast until it is phased out.
>>
>>>> Hopefully my understanding so far is correct. In the event that the
>>>> planning application is refused there is no capital item and the
>>>> claim for IBA's would become disallowable. Is there any recourse
>>>> for tax relief otherwise where the capital investment has not been
>>>> aborted bythe sole trader.
>>
>>>> Any help appreciated.
>>
>>>> Paul
>>
>>> You don't get IBAs on restaurants. IBA stands for "Industrial
>>> Buildings Allowance".
>>
>>> If the planning application is refused you wont be able to claim the
>>> professional fees against IT or CGT.
>>
>>> Are any of the professional fees relating to the plant and
>>> machinery?
>>
>> Actually its a hotel/restaurant/leisure building so presumably it
>> would be available for Hotels Building Allowance.
>>
> There's not "Hotels Building Allowance" - it's just that hotels
> qualify for IBAs if they fall within the rules.
>
> IBAs are being phased out.
>
>> The professional fees include not only architects fees but also
>> landscaping architects, structural engineering fees and mechanical &
>> electrical engineering fees. The latter will encompass all aspects of
>> heating, ventilation, drainage, water supplies etc. Would it be
>> possible to claim an element of the latter as being in respect of
>> plant & machinery? If so, where would one start wiith identifying the
>> allocation?
>
> Get the fee invoices split to identify them.

If he wants the costs to be tax deductable if all fails then why shouldn't 
he put share capital into a Ltd company.  Pay for the costs out of this 
capital and it it all goes pear shaped, claim relief on the negligible value 
of the shares?

Is there a point I'm missing?

On 12 Jun, 19:07, "Fred"  wrote:
> PeterSaxton wrote:
> > On 12 Jun, 01:49, mushtie@yahoodotcom wrote:
> >> On Wed, 11 Jun 2008 08:17:49 -0700 (PDT), PeterSaxton
>
> >>  wrote:
> >>> On 11 Jun, 12:20, Mushtie wrote:
> >>>> Hi.
>
> >>>> A sole trader business is preparing a planning application for,
> >>>> say, a new restaurant and leisure facilities and incurs
> >>>> substantial costs in terms of planning application fees,
> >>>> architects costs and other professional fees.
>
> >>>> I understand these fees are capital in nature and are not tax
> >>>> deductible for income tax purposes. However, they are available
> >>>> for an IBA claim or atleast until it is phased out.
>
> >>>> Hopefully my understanding so far is correct. In the event that the
> >>>> planning application is refused there is no capital item and the
> >>>> claim for IBA's would become disallowable. Is there any recourse
> >>>> for tax relief otherwise where the capital investment has not been
> >>>> aborted bythe sole trader.
>
> >>>> Any help appreciated.
>
> >>>> Paul
>
> >>> You don't get IBAs on restaurants. IBA stands for "Industrial
> >>> Buildings Allowance".
>
> >>> If the planning application is refused you wont be able to claim the
> >>> professional fees against IT or CGT.
>
> >>> Are any of the professional fees relating to the plant and
> >>> machinery?
>
> >> Actually its a hotel/restaurant/leisure building so presumably it
> >> would be available for Hotels Building Allowance.
>
> > There's not "Hotels Building Allowance" - it's just that hotels
> > qualify for IBAs if they fall within the rules.
>
> > IBAs are being phased out.
>
> >> The professional fees include not only architects fees but also
> >> landscaping architects, structural engineering fees and mechanical &
> >> electrical engineering fees. The latter will encompass all aspects of
> >> heating, ventilation, drainage, water supplies etc. Would it be
> >> possible to claim an element of the latter as being in respect of
> >> plant & machinery? If so, where would one start wiith identifying the
> >> allocation?
>
> > Get the fee invoices split to identify them.
>
> If he wants the costs to be tax deductable if all fails then why shouldn't> he put share capital into a Ltd company.  Pay for the costs out of this
> capital and it it all goes pear shaped, claim relief on the negligible value
> of the shares?
>
> Is there a point I'm missing?

That is possible if his circumstances are such to make use of this
loss.

Companies are not entitled to many of the reliefs/allowances available
to individuals under capital gains tax so it's a question of judgement
of what is likely to happen in the future.