Hi Keith, thanks for your reply - is it ok just to ask for further clarification?
Can you explain the following statement you made in more layman's terms for me?
"It would be appropriate to increase the fixed asset total by the improvement expenditure."
I am sure you know what you are talking about! But please can you help me understand what I have misunderstood then? : I read
BIM46904 - Specific deductions: repairs and renewals: what is a repair: improvements. from there I quote:
"If, instead of simply repairing the asset, the taxpayer has the asset altered, improved or upgraded, that is makes it better than it had been before, then all the cost of the work is capital expenditure. ...."
this leads me to believe that the total cost of the work is allowable - but I am not sure I know what it really means for it to be "allowable" can you explain?
it goes on to say " No revenue deduction can be allowed for any part of the expenditure." can you explain this sentence in layman's terms please?
So - is there any benefit in doing this at all?
So I have my limited company - currently dormant. I have been operating as a sole trader instead for a few years. I want to know whether I need to do the above loan, capital expenditure, increased fixed asset is worth it? how will it benefit me?