Capital Allowances and refurbishment costs | AccountingWEB

Capital Allowances and refurbishment costs


Scenario - a business gives up a lease on a property.  During its occupancy the business has incurred capital expenditure on refurbishment.   No allowances have been claimed as all expenditure has been deemed capital.  The business will not recover any costs of the refurbishment expenditure when it gives up the lease, and therefore has an asset sat on its balance sheet with no realisable value.  If this cost is written off to the profit and loss account, would this be tax deductible expenditure?

Thank you


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Group: Construction industry accountants
The place to discuss accounting and tax issues specific to the construction industry, including CIS tax, VAT self billing and authenticated receipts.