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Over the years the Courts have held that sheep grazing and poultry farming are husbandry, and that a dairy business and the rearing of pheasants for sport are not. Where the use is partly for other purposes the expenditure can be apportioned. The rate of allowances available and the way in which the system operates is very similar to that described above for industrial buildings. However, no allowance is ever given if the first use of the building is not for husbandry. A different treatment is also applied following acquisition of a used building unless the parties to the transaction elect otherwise.

The Inland Revenue’s internal manuals suggest there are four general factors to be considered, each of which is a question of fact and degree:     Does the item appear visually to retain a separate identity With what degree of permanence has it been attached to the building To what extent is the structure complete without it To what extent is it intended to be permanent or alternatively is it likely to be replaced within a short period There is obviously a core list of items that will usually qualify in the majority of cases.

Who is required to be registered for VAT. A person who makes taxable supplies above certain value limits is required to be registered. The current registration limit is £68,000 for 2009–10. The threshold is exceeded if at the end of any month the value of taxable supplies in the period of one year then ending is over the limit, or at any time, if there are reasonable grounds for believing that the value of the taxable supplies in the period of 30 days than beginning will exceed £68,000. A person who makes taxable supplies below these limits is entitled to be registered on a voluntary basis if they wish, for example in order to recover VAT incurred in relation to those taxable supplies.

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A_59_605


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