Tax (and accounts) treatment of tenants property improvements
Client company is taking a five or seven year lease on incomplete shell of one floor of a building. Was originally planned as ground floor offices (or retail) but owner is getting planning change to allow residential (but can't afford to continue the development).
If my client takes the lease and spends £150k on the conversion and fit out to make into a number of apartments and then rents them out to students over the five years of the lease it should make a profit to cover all costs including the conversion costs.
But how do we treat tenants improvements in the accounts?
Client is convinced he gets 100% tax relief on the cost of refurbishment? My thoughts are tax relief at end of lease - but I'm not sure why.
Any help would be much appreciated.
- Clients 607 12
- Starting new accounting business 201 4
- Is a property owner charging a peppercorn rent to a limited company acceptable 437 10
- Bookkeeping software for cafe and VAT 22 1
- VAT Reg.for sole trader with 2 S/E 24 1
- Sage Payroll 71 1
- SAGE 50 - Invoice Date 99 2
- VAT flat rate scheme 413 8
- Tolley UK sales number 198 7
- Intermediaries reporting - who does it apply to? 102 2
- Does SMP and SPP go up if leave goes across 2 tax years? 339 14
- Are agent account managers any good? 129 2
- Is the annual Money Laundering Payment tax allowable 143 1
- Non Resident Landlord Scheme - Penalties 64 3
- VAT registration - which address? 65 1
- Leaving the flat rate scheme 85 2
- Practice Company Secretarial Software recommendations please 226 4
- On line Remote Training 243 7
- Group Relief 80 1
- Sage 200 vatable journal? 103 4
- QROP pension input amounts 490
- HMRC BENCHMARK EXPENSES 470
- write off loan or loan to equity swap or both 436
- EPS and CIS deductions 291
- Sole trade business in UK, but the owner works from EU 282
- Construction CIS LLP Company 273
- Stamp duty on house transfer between spouses 236
- SAGE winforecast 196
- LIVE: Budget aftermath webinar 179
- Overdrawn director account 171