I have taken on a new client who 100% owns multiple LTD companies, one of which owns a commercial property which is rented back to the other two.
It looks as though their previous accountant has been applying the rule where by a group investment property can be moved to PPE and valued at cost less depn, so far so good.
The client has since bought a 2nd mixed use property through the same LTD company (commercial and residential) that they intend to rent out in future. My logic dictates that the treatment for that 2nd property be fair value through profit and loss, as it's nothing to do with the rest of the group businesses, but can the two different treatments be applied within the same company?
All advice greatly apprciated.