Project financing and capital allowances

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Hi, Can you help me please about diciding what category a purchase should go into?
One of our clients just paid almost £200k on "project financing" as the contract says. The project is to build a small retreat, and for the £200k they purchased the building plans, business contacts, market research, value assessment of the building plot they are planning on building. That is not clear at this moment if the project would happen at all, as they are looking for investors. I'm now confused, as I don't think that this is indeed a project financing if they are not the ones building the retreat. They just bought something that they are wishing to sell with gain.
What category should this purchase go into? If it is "just" a purchase or if it is indeed their project to finance? Can they have capital allowance on it? If yes, which one?
Sorry, we are a small accountancy practice with mostly one man consultants, and this company hasn't done such purchases before either. So we don't have experience with this.
Any answer or links would be much appreciated!

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By lionofludesch
24th Apr 2024 12:28


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