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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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 %