Work to comply with statutory notice

[michellemew]

I've recently heard that if work is required on premises to comply with statutory notices, the costs are tax exempt. Does anyone know anything about this?

[Tim Walden]

Hello,
I'm afraid that I have not heard of anything like that. Mind you, the Tax man don't advertise give outs. I know that if there was a way around the tax man, my boss would know of it.

[michellemew]

Thanks.
I thought it odd, otherwise people would be waiting to get an improvement notice and accompanying tax benefits rather than doing planned improvements, but didn't have enough information to argue this one!

[HelenPJ]

have a gander at this site: http://www.hmrc.gov.uk/

and this might prove some useful guidance : http://www.hmrc.gov.uk/helpsheets/ir222.pdf
as similar principles are applied to Companies

Basically put, if maintenance work to the premises is taken out, regardless of whether it is under an Enforcement Order or not, then it would be included in the Premises costs for the business.

Obviously, sensible businesses would ensure regular patterns of maintenance work is undertaken on their premises and machinery, which would obviate any Enforcement Notice

hope this helps a bit

[michellemew]

Thanks Helen,
In that context, the comments I heard make more sense.
Michelle