Art damaged in queue for loo (7)
I believe the answer is:
latrine
'for loo' is the definition.
(I have seen 'Military loo' mean 'latrine' so perhaps 'loo' could also mean 'latrine')
'art damaged in queue' is the wordplay.
'damaged' indicates an anagram.
'in' indicates putting letters inside.
'queue' becomes 'line' (a line of people).
'art' is an anagram of 'atr'.
'atr' going into 'line' is 'LATRINE'.
(Other definitions for latrine that I've seen before include "Camp toilet" , "Military convenience - reliant (anag)" , "An army loo" , "office" , "A military lavatory" .)