Doggy day care

I have just been visited by a prospective client who is planning to start a doggy day care business. She is planning a trendy business aimed at middle-class professionals who feel guilty about leaving their dogs alone in the house during the day.

Premises have been rented from the local council. This comprises a small standalone building on a piece of ground that apparently has been unused for several years. I have not seen documentation but gather that this is in effect a licence to use the premises on a monthly basis.

The client is decorating the building and is paying for a lawn to be laid over part of the surrounding ground with patio paving and gravel covering other areas. There will also need to be some fencing installed and a gate to provide security for the dogs.

My question is about the tax treatment or otherwise...