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'Fixtures and Fittings' or 'Leasehold Improvements

Fixtures and Fittings or Leasehold Improvements

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This is an accounting question (tax is all sorted - CAA 2001 is easy enough to navigate to identify Integral Features'.   

A company takes on a new lease for commercial premises.  Circa £100k spent on fit-out costs for: flooring, decoration, electric system, plumbing system, shower rooms, bathrooms, reception area etc.    Virtually all of this is capital in nature (the property is completely unusable before these monies are spent).  Should all £100k relating to capital items be :

(i) lumped as 'Leasehold Improvements',

(ii) Lump the expenditure of redecoration, flooring, plastering etc as 'Leasehold Improvements' and the balance (electrical systems etc) as 'Fixtures and Fittings (ie split it between the two categories in the accouns).

Obvs depreciation will be over the shorter of lease term or earliest break.

It probably doesn't matter too much, but just checking people's views for presentation

thank you.

 

Replies (4)

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paddle steamer
By DJKL
27th Jan 2020 15:32

I vote for (i)

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Replying to DJKL:
Psycho
By Wilson Philips
27th Jan 2020 16:57

+1

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Replying to Wilson Philips:
ALISK
By atleastisoundknowledgable...
27th Jan 2020 17:32

Wilson Philips wrote:

+1

Ditto. It’s easier

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Replying to atleastisoundknowledgable...:
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By jlh107
27th Jan 2020 21:07

Thanks folks.

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