Hotel in group, improvements and fixtures.
Group structure. Topco owns shares in two subs. SubA trades from a hotel. The freehold of the hotel is owned by SubB. SubB also has a trade of its own.
SubA has in the past year incurred £200k on groundwork improvements and £150k on Fixtures and Fittings upgrade. I understand that SubA can claim CA's on the eligible equipment and can not claim much at all on the groundwork improvement.
In the accounts of SubA I am going to have Leashold improvements of £200k being the capital improvement.
Q, if SubB comes to sell the hotel - where will it get its relief from the £200k spent by its sister company? i.e. does the £200k count as its qualifying expenditure?
Historically no rent has passed between the companies and no lease is in place.
In hindsight it would have been more straightforward had SubB paid the costs.
- Factors affecting tax charge FRS 19 (marginal rate) 10 1
- P35 and Service Company questions 78 3
- VAT chargeable to conference attendees 175 6
- Is Accountancy Becoming like an Insurance Policy 76 1
- Increasing the personal allowance: A top priority? 366 14
- Long period of account for Corporation Tax 158 7
- Flat Rate VAT and EU sales (Non VAT) 121 3
- NIC £2000 Allowance - Care Support Worker 112 3
- VAT, vans, sole traders and business use. 1,572 12
- Companies House incorporation service 278 11
- Share Capital 84 2
- Trading income or not? 147 1
- Charge HMRC 368 3
- FRS17 query 224 2
- How will auto enrolment affect accountants? 1,755 44
- If I repay my Directors loan, will I haveto pay tax on the profit ? 2,617 29
- Suppliers for Online Card Payments? 562 12
- Slipped out of the self assessment radar 282 2
- How to opt out? 407 6
- Sage Bank Reconciliation 97 1
- Xtuple 542
- Qtac payroll for bureau 372
- Confused - Professional Association a Mutual trader, or not? 314
- Industrial & Provident Societies 308
- Why would HMRC offer to close an investigation by contract settlement 285
- CIS schemes 217
- Domain name sale and limited company 202
- Investment 182
- Director legal fees in loose connection to the company 178
- Italian friend wants to set up a UK company to reduce taxes 176