By Philip R Heath

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Extra info for An introduction to homotopy theory via groupoids and universal constructions

Example text

One of the benefits of the integral features rules, apart from simplification, is that items that did not qualify by applying these rules, such as general lighting in a warehouse or an office building, will now qualify albeit at a reduced rate. Refurbishment schemes Building refurbishment projects will typically be a mixture of capital costs and revenue expenses, unless the works are so extensive that they are more appropriately classified a redevelopment. A straightforward repair or a ‘like for like’ replacement of part of an asset would be a revenue expense, meaning that the entire amount can be deducted from taxable profits in the same year.

Liquidated and ascertained damages Liquidated damages are outside of the scope of VAT as compensation. The employer should not reduce the VAT amount due on a payment under a building contract on account of a deduction of damages. In contrast an agreed reduction in the contract price will reduce the VAT amount.

Guidance about the meaning of plant has to be found in case law. The cases go back a long way, beginning in 1887. The current state of the law on the meaning of plant derives from the decision in the case of Wimpy International Ltd and Associated Restaurants Ltd v Warland in the late 1980s. The Judge in that case said that there were three tests to be applied when considering whether or not an item is plant. 1. 2. 3. Is the item stock in trade? If the answer is yes, then the item is not plant. Is the item used for carrying on the business?

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