UK Capitalisation of lease cancellation charge

[nickspam]

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!

 

[Fidget]

No. It's a cancellation fee, so it's an expense.