Sheep dog...tax treatment!

hjr

Not a joke,

If a farmer buys a sheep dog, how is this treated in terms of business expense? Is it capitalised? Is it treated as stock?

I could argue either way to be honest, but not sure which way is more correct!

viztopia

try the farming forum. how much was the dog?

hjr

dog was €1,800

viztopia

if you had said €800 I would definitely said to write it off to the p&l, but €1,800 is obviously a lot more. I think your best bet is to post the query in the farming forum. You get good replies to farm tax questions there. The only other thing to do is to ring your local tax office and see!

nompere

UK Revenue specifically accept that a sheep dog may be claimed as plant:

http://www.hmrc.gov.uk/manuals/camanual/ca21220.htm

That an animal may be plant was established in Yarmouth v France in 1887.

hjr

I would thing the same. So, claim a capital allowance on the dog!?

nompere

hjr wrote: »

I would thing the same. So, claim a capital allowance on the dog!?

Absolutely - and as we don't have the concept of short life assets, as they do in the neighbouring jurisdiction - claim them over 8 years.

As a part-time grammar Nazi, though not in this forum, I love the idea of a dog being treated as plant, though not a plant!

hjr

I know, the worry it that'll give the dog a complex if he's told he's now being treat as plant!

nompere

In my experience, if you tell the dog he's plant, but smile as you say it, he'll just wag his tail!

mozattack

I love this question!


To the above who said you could write it off to the P&L if €800 but maybe not if €1,800, well the cost isn't the driving factor but I can understand your viewpoint.

Capitalise maybe, funny cos it means you could pay CGT on the sale of the dog so if the sale was over the price paid and given capital allowances were claimed.