Purchasing of commercial property

JJH1969JJH1969 Feels At HomeStaffordshirePosts: 110Registered
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?

Answers

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderPosts: 1,462Moderator, MAAT, AAT Licensed Accountant
    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 Posts: 645Registered
    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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