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With over five decades’ experience serving a diverse range of clients in the South West, we possess an unbeatable depth of knowledge across a wide range of industry sectors.
Our specialist partners and teams can provide expert advice on everything from farming and agriculture, to military tax allowances. We’re here to help you make the most of your planning opportunities so that you can grow with confidence.
With tightening environmental requirements, many livestock farmers are facing large outlays on the construction of additional slurry and manure storage and the covering of existing stores.
Although officially withdrawn, HMRC Brief 03/10, issued for the pig industry in 2010, provides helpful support for claiming plant and machinery capital allowances on many of those costs. Amongst others, the following items were identified as potentially eligible:
Slurry storage systems, including tanks (above or below ground). A ‘slurry storage tank’ includes a lagoon, pit or tower used for the storage of slurry.
Reception pits, effluent tanks and channels and pipes used in connection with the slurry storage tank.
Slatted flooring areas integral to a slurry system.
Slurry de-watering equipment.
Rainwater harvesting and filtration equipment, including associated gutters and piping.
Concrete pad surrounded by low-level barriers for the temporary storage of manure.
Silo for temporary storage.
Many businesses will qualify for 100% annual investment allowance on cost of these items. Where there is grant-funding, capital allowances are calculated on the net cost after deducting grant.
The covering of existing effluent facilities can be more problematic. A roof or structure that is integrated with the structure of the slurry/manure store structure should qualify for plant/machinery capital allowances as part of that asset. But commonly, the cover takes the form of a separate shed or roof structure that is built over or around the effluent store and separate from it. Such structures will usually only qualify for 3% per annum structures and buildings allowance.
Similarly, where a project includes both a slatted tank and a new cattle shed, it is necessary to clearly identify the cost of these two different elements because plant/machinery capital allowances are available on the former only.
Building project costs tend to be high. Please discuss your plans with us in advance, so that the project can be designed tax-efficiently and costs suitably documented.