My client has opened a coffee shop in rented premises. He has spent a lot of money refurbishing it, including knocking down walls and other building works. He has received a grant to go towards the renovation.
At the moment, I have capitalised the renovation works, and the grant is also in the Grants section of creditors.
Am I correct in thinking that the renovations can't be depreciated, and that there are no capital allowances available for this expenditure? It's the first time that I have dealt with this in practice, and keep finding conflicting advise whilst researching what to do.