by Ian Laurie, Director
In respect of commercial operating leases, the Financial Reporting Standard 102 (FRS102), which replaced FRS12, allows for a future dilapidations liability to be termed as an expense which can be included within the profit and loss account of the firm. Until the obligation is completed, deduction can then be allowed within the company’s tax computation.
The current squeeze on profits of many occupiers, and in particular retailers, means that reducing tax burdens could be a vital part of any forward trading plan.
Watts Group has extensive experience in dealing with lease end dilapidations, and regularly prepare FRS102 compliant dilapidations assessments for a variety of corporate clients, enabling them to provide a reliable estimate of their Leasehold Dilapidations costs. As with all accounting matters however it is vital that advice be sought from a qualified accountant before proceeding with any inclusion of costs against Leasehold Dilapidations in your Financial Statements.
For more information please contact our Director, Ian Laurie on +44 (0)161 831 6180.