I am hoping to confirm my suspicion here. A client of mine mortgaged an FHLin Sep 2018 via Limited company. They paid a deposit of £150k on a £500k London property. Property meets all the rules of occupancy etc of an FHL. First accounts being drawn up now and the argument is whether the mortgage deposit of £150k should be expensed? I am aware of the Annual Investment Allowance (AIA) being allowable up to £1m but I cannot see a definition that includes building and land. I am thinking this is an investment and a liability in the balance sheet with deposit being capitalised alongside some of the other purchase costs.
Any help will be much appreciated.
Thank you in advance