Andrew Swales
Well-Known Member
It's a fair point you make and particularly galling that zoos run as businesses can't get tax relief on improvements and enclosures given they have little value in the long-run (as opposed to a business building a factory that could offset the costs against any future sale of factory) -technically you'd get tax relief for the costs if the zoo were sold but that's not really an objective for most small zoos. You might get tiny respite under the new allowances for buildings and structures (crumbs really as you get the relief over fifty(!) years).
The presumption is that any business is temporary and it is only a matter of time before it is sold by its founder, as an asset; an asset which can be valued in itself in addition to the sum of its parts. This is reinforced by any company (including a zoo ) being able to claim tax relief on temporary and moveable 'plant' items and equipment, but not on permanent fixed 'betterment'.
Farming is of course, in much the same position as zoos, ie long-term investment, usually by the founders or their families, and an inability to 'cash-in' without the loss of a life-times work or that of previous generations. BUT, agriculture is massively subsidised, both directly and with numerous tax breaks, and exemptions to most of the UK's planning restrictions. These actively heavily financially penalise zoos, when compared to all other educational and leisure institutions and museums.
I never understood why entrance fees for Banham and Suffolk increased so much when they changed from a private enterprise (suffering considerable taxes) to a charity (suffering far less taxes and benefiting from Gift Aid to increase the value of entrance fees.
There is a very good reason for this, but not one I can go into here...
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