Repairs or Leasehold Improvements?

LouiseR

Please can someone help.

A Ltd company has spent approx £10,000 on improving their premises/warehouse which they only rented for approx 12 months. The improvements were building a small dispatch office in the warehouse and concreting a parking area. Not removable items.

I know this would normally be classed as leasehold improvements but as they were only in the premises such a short time can this be expensed to the P&L?

Thanks

Louise

LouiseR

Does anyone have any comments/ideas? Thanks

deanshepherd

If there is no enduring benefit to the business then I would suggest it probably is inappropriate to capitalise the expenditure. Whether it then qualifies for tax relief is another question.