Limited company purchase of property

Limited company purchase of property

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Hello!

I have a limited company client who has purchased an old social club for £100k and then spent a further £90k turning it into offices - they run their business from most of the offices but also rent a few out; the income from which is part of the business.

I have taken out various costs of getting the property up and running i.e. venetian blinds etc and treated them as revenue expenses.

Obviously the cost of the building (and associated costs of purchase) will be capitalised in the balance sheet but can I claim any Capital Allowances on the extra costs of getting the building fit for purpose or should these costs just be capitalised also?

Any help gratefully received as I seem to be having a mental block with this!

Cheers

Replies (4)

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By pauljohnston
19th Dec 2014 08:11

Extra costs

Why are these not Revenue expenses?

Please can you give more information

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By Southwestbeancounter
19th Dec 2014 10:25

Hi Paul

Thanks for your reply.

I have already taken out the revenue expenses and claimed them accordingly; these extra costs are basically costs of getting a virtual shell of a social club and turning it into offices i.e. partition walls, doors, windows etc. so they form the fabric of the building so to speak.

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By pauljohnston
19th Dec 2014 10:42

My thoughts

it appears before the Company could move in was a development project.  They own the building so capitalisation that you mention would be the obvious way forward.

In the back of my mind there is a case concerning Whethersppons pubs that may have bearing on your case.  Hopefully those more knowlegeable will come to your aid.

I am not sure how much you are taliking about  but there has been considerable interest in the Capital Allowances available for businesses so it may be worthwhile getting in touch with a specialist.  They often charge a %

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By Southwestbeancounter
19th Dec 2014 10:51

Thanks Paul
 
 

Thanks Paul

 

 

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