Client received insurance proceeds for loss of rent and for repairing the property following exposure to a Cannabis Plant
Insurance Proceeds covered the following
1) Repair Walls
2) Redecoration
3) Rubbish Clearance
4) Repair and rebuild Walls
5) Electrical Re-wire
6) New Carpets for upstairs
I assume all the above will be revenue expenditure
The client also realised the whole of the ground floor need to be replaced due to damp and wood worm and paid 10K. This was not covered by insurance. This would be capital ?
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Replies (18)
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Why do you think it is capital.
There are plenty of cases that could help you frame an informed viewpoint
Share your research.
And highlight the aspects of your clients specific circumstances .
This very point has been dissected on this forum many times.
Indeed in the past week!
Please kindly let us know if you reach your own conclusion
If there's been an element of improvement to the floor such as damp proof coursing where there was none previously, then this may be capital in nature - although possibly just incidental to the repair.
I vote expense.
If it's covered by insurance, it's not expenditure at all.
A new floor ? Was there a floor before ? I'm guessing yes. Repairs for me. I can see it being a substantial technical improvemednt on what they had before.
Yes there was a wood flooring and replaced it will similar so thinking it about - it is a repair.
Some jokes don't need editing. That's very good. (Ever wondered about capitalising on your stand-up? Maybe make some revenue?)
Alternatively, he replaced the whole of the ground floor! (Quite a feat of engineering, especially for just £10K)
Stone me, You may be about to make a hash of this. What kind of joint was it that got ruined?
It's a dooby of a question.
