Ltd company and pension incurred costs

About the claim

Property Refurbishment 

A limited company and pension incurred significant costs carrying out an extensive refurbishment to create modern office space to a very high standard. The project took place over two accounting periods ended 31 March 2020 therefore the Capital Allowances were time apportioned in relation to the expenditure, in what is considered to be a fair and reasonable manner, over the two accounting periods. This also meant first year allowances could be utilised e.g. Annual Investment Allowance (AIA).

The property refurbishment was funded 55% by a Company and 45% by a pension fund. This meant the claim was split accordingly. The Capital Allowances belong to the pension fund can be potentially passed over to a qualifying entity if the property is sold in future.