Where Taxpayers and Advisers Meet

Short leasehold improvement costs and compensation on leave

Kiran
Posts: 9
Joined: Wed Aug 06, 2008 3:38 pm

Postby Kiran » Wed Aug 16, 2006 7:38 am

Renewal date was due for my short leasehold workshop. I had the right to renew but was not respected by the landlord as he had plans to build flats etc. I received over £ 20k in compensation as I was forced to move out to a new site & took my case to the court.

Q.1. Is this compensation taxable?

Q.2. I spent over £28K in the improvement of this
workshop few years back. Could this qualify
as a loss under "C G T"? Is there any other
way to get tax relief on this expenditure?

Please advise. Thanks. K.

Return to “Business Tax”