Two questions regarding pub lease....

Two questions regarding pub lease....

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Hi all,

I have two questions which I'm sure will be easy for you knowledgeable lot. Unfortunately, a colleague has put some doubt in my mind regarding my accounting treatment.

1) A client is going to take over a pub and paying the following ingoing costs,
Leasehold £45000 (15 years to run)
Goodwill £30000
F&F £22500

Rent will be £55000 per annum.

Regarding the lease, should this be amortised on the balance sheet by £3000 per annum? How is there a tax deduction on this, capital allowances?

2) A client pays £4450 in professional fees relating to the granting of a lease.

Should this be capitalised rather than expensed? Would this simply be added to the cost of the lease and amortised? Also, how would they obtain a tax deduction?

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