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Where Taxpayers and Advisers Meet

Uninstall bathroom in nursing home

Lsp54
Posts: 67
Joined: Tue Sep 15, 2009 5:11 pm

Uninstall bathroom in nursing home

Postby Lsp54 » Sun May 27, 2018 9:28 am

hello, my client is reconfiguring one of the rooms in the admin area. It was previously set up as a shower room with hot & cold water etc. They've changed it to a regular admin room, but the plumbing costs of decommissioning the washroom amount to more than £8000. I'm guessing this is a non-allowable cost - or improvements to property perhaps?
Any advice is much appreciated. Thank you.

bd6759
Posts: 2964
Joined: Sat Feb 01, 2014 3:26 pm

Re: Uninstall bathroom in nursing home

Postby bd6759 » Tue May 29, 2018 10:26 pm

I'd say it was capital expenditure.

Lsp54
Posts: 67
Joined: Tue Sep 15, 2009 5:11 pm

Re: Uninstall bathroom in nursing home

Postby Lsp54 » Wed May 30, 2018 7:57 am

Thank you very much for your reply. Do you think the cost of decommissioning the washroom would qualify for capital allowances, like loss on disposal of asset? The costs include plumbing and removal of all associated pipework.
Thank you again.

SteLacca
Posts: 426
Joined: Fri Aug 07, 2015 2:17 pm

Re: Uninstall bathroom in nursing home

Postby SteLacca » Wed May 30, 2018 1:46 pm

It sounds like property improvement to me, and so not capital allowance, but capital expenditure for CGT mitigation on disposal.

bd6759
Posts: 2964
Joined: Sat Feb 01, 2014 3:26 pm

Re: Uninstall bathroom in nursing home

Postby bd6759 » Wed May 30, 2018 11:30 pm

Only if the decommissioned assets were already in the pool of qualifying expenditure, which is very unlikely.

Lsp54
Posts: 67
Joined: Tue Sep 15, 2009 5:11 pm

Re: Uninstall bathroom in nursing home

Postby Lsp54 » Sat Jun 02, 2018 9:35 am

Hi, thanks for your reply. A very long time ago the original fixtures - sanitary ware etc, would have been included in plant and equipment for capital allowances, as were the bathroom fittings for all the residents rooms. But the building/ pipework was included in the cost of building the custom built nursing home.
Thank you.

bd6759
Posts: 2964
Joined: Sat Feb 01, 2014 3:26 pm

Re: Uninstall bathroom in nursing home

Postby bd6759 » Sat Jun 02, 2018 10:28 am

Then surely they will have already been written off. In any event, the costs will be in the pool of expenditure.

Lsp54
Posts: 67
Joined: Tue Sep 15, 2009 5:11 pm

Re: Uninstall bathroom in nursing home

Postby Lsp54 » Sat Jun 02, 2018 11:50 am

Quite right. Thanks everyone for helping me think this through. Much appreciated.

Simaje
Posts: 1
Joined: Sat Oct 27, 2018 3:07 pm

Re: Uninstall bathroom in nursing home

Postby Simaje » Sat Oct 27, 2018 3:17 pm

Did you find a way?

Lsp54
Posts: 67
Joined: Tue Sep 15, 2009 5:11 pm

Re: Uninstall bathroom in nursing home

Postby Lsp54 » Mon Oct 29, 2018 12:20 pm

Hi, In the end I treated the expenditure as property improvements.


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