Readers’ forum: Expenditure on business property

My client runs a business renting out self-storage spaces and the business also provides insurance for the goods his clients keep in his storage compartments.

He has incurred capital good scheme (CGS) in the course of property renovation.

Could it be argued the expenditure on the business is exclusively attributable to taxable storage? Would seperate partial exemption and CGS calculations need to be done for previous years and does the de minimis test apply to CGS items?

Query 20 515 – Black Swan.

Consider the outcome of Sofology.

It is not clear when the renovation took place. The reference to making calculations for previous years suggests that it was some time ago and the possibility of a different recovery has only just been noticed. That raises a separate question of whether the method that has been used is an ‘error’ because it is only possible to make a...