Capitalisation of lease cancellation charge

UK Discussion in 'Technical Queries' started by nickspam, Feb 1, 2019.

  1. nickspam

    nickspam

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    Hi there

    My company is refurbishing one of its buildings. Currently we lease some laundry equipment, however as part of the refurbishment we are going to terminate the lease (thereby incurring a cancellation fee) and outsource the laundry instead.

    My question is - can we capitalise the cancellation charge as part of the refurbishment costs?

    Any help would be gratefully received!

    Many thanks!
     
    nickspam, Feb 1, 2019
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  2. nickspam

    Fidget VIP Member

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    No. It's a cancellation fee, so it's an expense.
     
    Fidget, Feb 4, 2019
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