Purchasing of commercial property

JJH1969
JJH1969 Registered Posts: 110 Epic contributor 🐘
edited June 18 in AAT member discussion
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?

Comments

  • MarieNoelle
    MarieNoelle Registered, Moderator Posts: 1,303
    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
    CeeJaySix Registered Posts: 630
    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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