Purchasing of commercial property

JJH1969

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?

MarieNoelle

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.

CeeJaySix

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.