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bigduckontax
bigduckontax, Accountant
Category: Tax
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I purchased a commercial property back in November 2013 I have

Customer Question

I purchased a commercial property back in November 2013 I have converted it it to a guest house can I claim a capital allowance against any part of the renovation and when can I claim from.
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

Unfortunately no, but the cost of the conversion is added to the purchase price and inflates it thus reducing the gain on sale. This gain would be the subject of Capital Gains Tax at some future indeterminate sale date.

As a general rule improvements eg new kitchens, installation of central heating etc are relieved for tax in this way. Routine repairs and maintenance remain normal expenditure which can be set against trading profits.

Capital allowances do not come into this matter, sorry. You may have to wait a long time to recover your costs.

I do hope I have been able to help you with your question.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your excellent support.

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