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Purchasing of commercial property

JJH1969JJH1969 Feels At HomeStaffordshireRegistered Posts: 110
My client has purchased a commercial property and there are a couple of fees which I have not come across before : Security Fee and Brokers fee. Are these capitalised or are they a revenue cost?


  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,431
    Are these fees relating to obtaining a mortgage? If this is the case they are not allowable capital expenditure - the list of allowable capital costs is listed in Capital Gains Manual CG15250.
  • CeeJaySixCeeJaySix Well-Known Registered Posts: 645
    Although in that case you could treat as a prepayment and release to the P&L over the term of the mortgage, though I wouldn't bother unless significant.
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