A company is carrying out a major fit-out to new office premises which it plans to occupy in the following year. It has obtained a final quote from its builders in respect of the fit-out project. As at the year end it has incurred fairly significant preliminary and professional fees (such as project management architect and surveyor fees) in respect of the project although the fit-out itself will not commence until the new year. Can capital allowances be claimed on the professional fees in the current year even before the fit-out project is completed? Or will capital allowances be denied on the ground that the underlying asset does not yet belong to the company (since the project has not been completed)?
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A company is carrying out a major fit-out to new office premises which it plans to occupy in the following year. It has obtained a final quote from its builders in respect of the fit-out project. As at the year end it has incurred fairly significant preliminary and professional fees (such as project management architect and surveyor fees) in respect of the project although the fit-out itself will not commence until the new year. Can capital allowances be claimed on the professional fees in the current year even before the fit-out project is completed? Or will capital allowances be denied on the ground that the underlying asset does not yet belong to the company (since the project has not been completed)?
Answer
The questioner is right...
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