Refurbishment of Premises

Jon Dawson
Jon Dawson Registered Posts: 2 New contributor ๐Ÿธ
edited June 18 in AAT member discussion
My client has a property under a full repairing and insuring lease. They have recently undertaken a substantial refurb programme. Could you tell me whether this is posted to profit and loss or does this need to go against the balance sheet?

Comments

  • PGM
    PGM Registered Posts: 1,937 Beyond epic contributor ๐Ÿง™โ€โ™‚๏ธ
    I'm sure there will be posts from more experienced people, but;

    Anything classed as repairs/renewal/decoration is a revenue cost.

    Improvements such as extensions or new facilities are capital, and can go to the balance sheet.
  • Jon Dawson
    Jon Dawson Registered Posts: 2 New contributor ๐Ÿธ
    Thanks.

    I thought that would be right.
  • deanshepherd
    deanshepherd Registered Posts: 1,798 Beyond epic contributor ๐Ÿง™โ€โ™‚๏ธ
    Unless the property was not in a fit state to conduct the trade when the lease was acquired. In which case it may be capital.
  • PGM
    PGM Registered Posts: 1,937 Beyond epic contributor ๐Ÿง™โ€โ™‚๏ธ
    deanshepherd wrote: ยป
    Unless the property was not in a fit state to conduct the trade when the lease was acquired. In which case it may be capital.

    Ah yeah that as well. I'm very much a 50%'er :D

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