16 replies to this topic

[bramblebasher]

A while back I had an appeal for an agricultural workers dwelling dismissed.

 

One of the main reasons it was dismissed was on the basis that the business had not been planned on a sound financial basis. The inspector deducted some £10 000 from year 3 predicted profits for the cost of a mobile home, referring to it as a 'capital allowance.'

 

The inspectors assertion appears to have been incorrect. A mobile home is synonymous with caravan for the legal purposes of planning, according to the HMRC a caravan is not considered plant when it occupies a residential site. Since planning applications for the stationing of a temp mobile home are for a change of use, from sole agriculture to a mixed use of agriculture and residential, the following information is pertinent :

 

http://www.hmrc.gov....ual/ca22100.htm

 

On that basis the caravan is not plant and is therefore not tax deductible as capital allowances. As far as my understanding goes!

 

What is correct is that a proportion of the residential unit can be offset as fulfilling a business requirement, for example 20 percent of the space may (?) be an office which is a business use. 

 

Anyone have any thoughts on this? 

 

 

[Groundhog]

dont quite understand that would have been a fixed cost in either year one or before the application was put in surely ?(Sorry I know you dont like being called Surely).

Sound financial basis is trading profit and loss account.

Capitol investment shows your commitment.

Your gross margin /Income minus variable costs .

Its projected why was your mobile in the figures

[shepie]

k

[Groundhog]

if it wasnt in the figures how did he know what it was worth.

[shepie]

M

[respectedponydriver]

Hi All,Pony here,

 

I would have asked him for his accountancy qualifications,I asked everyone now for their qualifications on the subject that they are supposed to be expert in.

 

This is only fair.

 

Hope you get on ok.

 

 

 

Pony.

[tonydockers]

not sure if im missing the point or any point as ive not yet started the financial parts for the purpose of planning so sorry in advance.

 

If you own the land no mortgage and have funded all of the infrastructure such as water connections animal housing and in this case the mobile home and its shown in your books as a directors loan payable on sale of the farm how could he deduct any element or even call it into the business??

[KChally]

Our LPA never questioned our mobile home and our accountant never even accounted for it in our books. We already owned it when we put the permanent app in. All we had to show in our books was the Trading and profit and loss accounts for the business. Of course the LPA had to see that we were making enough money (in their view) to support the building of the house. We had to send in the plans for the house at the same time. They needed to see profits in the region of £30k.

 

Hope this helps.

 

KChally

[KChally]

Was this app for a temporary permission?

[KChally]

Ah, sorry, you previously said for an agricultural workers dwelling. Do you therefore intend to live permanently in this mobile home?

[elegantstorm]

To my mind it's your home paid for out of your savings which you will maintain out of your agricultural wage.  Ultimately to put the £10k against your year three profits is wrong.  It has a value and a resale value so if it were to be factored in you'd write it off per year as it's value decreases.  A vehicle for example for tax purposes you claim (I think) 20% of the value against tax in year 1, and 10% each subsequent year until there is no value left.  Before they did away with agricultural taper relief a barn would be written off over 20 years, so say spend £20k on your barn then you used to deduct £1k per year.  If you were to build a house you would likely fund that with a mortgage over 20/25 years and again you'd be looking to pay this out of your agricultural wage.  Have you done any online research into this to see if anyone else has come across it.  Perhaps next time within the business plan state the cost of the unit (which could be less than you intend to spend), and then explain within your case that you've not considered it within the figures as this is your private home which you will privately fund however the unit has a life of 10/15/20 years with an expected resale value after 5 years of £x amount hence the cost per year is.... so if the next inspector decides to include the cost there's a sound yearly cost

[tonydockers]

ok

 

we purchased our 3 bed twin mobile for 11,500 it is 25 years old with 1 careful family owners....mover reckon we could resell for 16k, how would this be a burden to the business???

[j and H]

Blimey…you lot like your luxuries lol..we picked this 2002 static up for 1,800 delivered… and she is sound as a pound…just spent 388 pounds getting two big gas bottles and fitting plus full gas safety check, 

[elegantstorm]

We're in a static with double glazing.  First winter was very cold, but not sure if that was that particular year.  We were getting through 47kgs of lpg every ten days with the gas fire on 24/7.  We then moved to electric heating (mains electric much cheaper than lpg) and I've been quite happy ever since.  Last year we installed a woodburner - now that belts out some heat which we tend to just use in the evenings so have the electric keeping the place warm the rest of the time.  2kW convector heaters are cheap and effective, and cheap enough to replace when they pack up.  Oil filled radiators give a more continuous radiated heat but cost a bit more.  If you go with electric heating you will need to install a separate consumer unit and power points as a standard static only has a 16amp supply.  Whilst you're at it install some extra power points as then you can be running a decent wattage kettle, dishwasher, and whatever other electrical bits you want without having to constantly juggle your demand useage

[shepie]

had dg , electric heaters and gas fire / water heater

Now have combi doing 10 rads / water for us and campers
It uses less than just the gas fire / hot caravan water , even have a bath !!
Over 3years it will be cheaper than gas fire/ electric and it cann all be removed and put in the house , even the 4" insulation board underneath and lagged roof space
Why suffer with mouldy curtains and nowhere to dry coats

[Groundhog]

Blimey…you lot like your luxuries lol..we picked this 2002 static up for 1,800 delivered… and she is sound as a pound…just spent 388 pounds getting two big gas bottles and fitting plus full gas safety check, 

champion stoves at staverton,cracking little woodburners

[Sunnysouthdevon]

Shepie ..... Have you actually done all those rads and finished your bathroom? Your wife will be a happy lady ha ha... If anyone lives south devon or close Cornwall il throw some central heating in your static for cheap.