Garden office - what can I reclaim?

hander

Not sure if this is the place to ask this question - but couldn't find a more appropriate forum.

I'm planning on buying a garden office - basically a posh shed. I write books and this would be my place of work (replacing my office in the house). It will cost about 13K.

Does anyone have any idea what might be reclaimed?
1) VAT? (I'm currently on Flat Rate scheme so only reclaim for purchases over £2,000 - so this will qualify on that front but it isn't clear from VAT rules)
2) Tax? Can I claim (part of) the cost of the building as Capital Allowances or something else?

Really appreciate anyone's help. Thanks.

Pennywise

You should be able to reclaim VAT as long as there is no private use.

You can't claim the costs as an expense against income tax as it isn't "plant" within the definition for capital allowances - it is property improvements, so you get tax relief against capital gains when you come to sell your house (and the garden office).

hander

Super-quick reply. Thanks!

Can I ask how you know this? For example, I'm looking at this http://www.shedworking.co.uk/2008/06/business-of-shedworking-part-1.html (and there are three more parts) which indicates I can claim all costs of building... just none of the running costs that one would normally claim while working at home.