Purchase of property freehold - capitalisation of costs

Purchase of property freehold - capitalisation...

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We recently bought the freehold of a property via the enfranchisement process. We set up a limited company to buy the freehold and incurred and paid for professional fees relating to the purchase (surveyor and legal) prior to the incorporation of the company and after incorporation. The whole purchase process took over 2 years. The costs incurred prior to incorporation were invoiced to the leaseholders of the property and money was collected from each and paid directly to the lawyer acting for the company, which at the time was in the process of being formed. After the company was formed and a bank account set up, all further invoices were made out in the name of the new entity. Now we are preparing the financial accounts and are not sure if we capitalise all costs incurred in the freehold purchase process i.e. those incurred before and after incorporation, or if we just capitalise those incurred after i.e. those invoiced in the name of the company. The total purchase was made up of the premium value for the property and the costs of all parties involved. We assume that this total cost is what we report as a fixed asset or can we expense those professional fees?

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