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.
- VAT BOX 6 & 7 errors 24 2
- Sage payroll 617 13
- Consortium relief and bad debts 77 4
- PAYE coding notice - deliberate misstatement 966 17
- VAT Option to tax 341 7
- Late P800 demand shows later year? 240 13
- Laptop purchase 1,548 21
- Entrepreneurs Relief 62 2
- CVA guidance 104 2
- BEST CPD COURSE 93 1
- Total cost of employment 270 3
- Accountancy software for an imac 258 6
- PAYE Coding Notices 522 10
- directors loan movements and repayments 240 3
- VAT registration for "co-operative" formed to provide flood defences 61 1
- Business travel apps 75 2
- EIS - connection through employment 65 1
- Weely paid employees 338 4
- Payroll - Previous year not filed 131 2
- Help car benefit 213 5
- Residential Property Purchase Above £750K 891
- Using Sage with Sofa Categories 624
- Free Tax Legislation? 382
- Director Loan account operation 379
- Non-Resident Director - UK Tax Position? 326
- transferring simply accounting 2010 from xp to windows 7 307
- Understanding the implications of January 2015 VAT changes for downloads on threshold for VAT registration 303
- Sage 200 and Access Dimensions reviews 276
- Paye procedures for CVA 208
- rent-a-room allowance for part of the year 200