Initial buy out Cost for a restaurant

by **guilong** on Wed Dec 21, 2011 5:06 pm

I have a client who took over a restaurant for pruchase price of £90K, He is running it as sole trader( he is paying regular rent to landlord as well)
Is this cost capital expendure and amortised over years?
Or is this the capital cost which remains in account and set off with capital income in future if he decides to sell the restaurant in future.

Your advise will be appreciated !

Jun

by **section 44** on Wed Dec 21, 2011 6:07 pm

What did he purchase for £90k? Premises (freehold/leasehold)? Goodwill? Stock? etc

by **guilong** on Fri Dec 30, 2011 2:26 pm

I think 90K may be goodwill

Because he is paying rent to landlord and he paid stocks in addtion.

Because the restaurant is taken over as going concern,

90K payment shall covers kitchen equipment, desks, chairs and decroration and repuations in local area.

Kind regards,
Jun