My client has acquired a 15 year lease with the option to purchase on a building in a poor state of repair. He has spent £100,000 doing up the premises and only £30,000 of these costs are eligible for capital allowances due to various tax cases eg Law Shipping.
Can IBA's be claimed on the "capital" costs of refurbishment such as construction of doorways, toilet blocks, resurfacing of yard, new windows and general refurbishment/decorating costs?
Are these simply capital costs that are "lost" since the lesaeholder does not own the property?
Is any tax relief available at all?
Any suggestions would be appreciated!
Iain Lindsey.
Iain Lindsey