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.
- Personal returns late information - when to get tough? 971 11
- tax credits 74 5
- Error in 11-12 return done by previous accountant, do we have to offer them to correct or can I do and client reclaim cost 118 5
- accruals and prepayments please help anyone out there 472 19
- Is there difference between when you state you will provide a specific provison and you will make a specific provision of £3200 against a partcular debt? 152 6
- When will Private Principal Residence Relief cut will start? 549 11
- Can rental income ever be trading income? 246 3
- Benefit In Kind Accommodation 91 1
- Tax Return Deadlines 172 3
- Foreign income for self employed 110 1
- Whats the best way to keep my accounts? 607 18
- Sage help...written off bad debt, done year end now bad payer wants to start to pay 56 2
- Who owns SAGE Data? 484 10
- Sage 50 Customer Statements and Running Balances 193 1
- EC VAT 223 10
- Land Opt to Tax - VAT scope 217 7
- Musician deductible expenses 99 1
- Invoice or journal for inter-company transactions 103 1
- How do I clear transaction history - Sage 50 v9 283 8
- Flat rate vat error 346 7
- Desperately seeking Susan, Sam or anyone with any other name 852
- Experience with Islamic investor following Sharia-compliant rules? 512
- Darwinpay Partnership Assessment 323
- How to format a stock book 297
- Tax efficient holding company structure 237
- S464A Charge to tax: conferring benefit & BIK 232
- Investment property company accounts template 221
- Outlook 2007 with business contact manager not loading on new laptop 215
- auto enrolment - calculation of first pension deduction 183
- RTI and Annual Directors Salary 154