Capital allowances - timing of expenditure & stage payments
My client (Co A) built a new building between August 2007 and May 2009 on land it already owned. The total construction cost was £4m.
Co A occupied the building on completion. The builder was a related party (Co B) who invoiced Co A monthly.
Co A capitalised the stage payments.
I have a full priced breakdown of the construction cost so I am able to prepare the capital allowances analysis.
My question concerns how to treat the stage payments as some of them fall into the period pre-integral features.
Do I simply treat the expenditure as incurred on practical completion or do I need to split the claim by reference to the invoices?