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We have a client who is commencing a 'self storage business', which basically involves the acquisition of a warehouse and the installation of a mezzanine floor. The floor space is then divided into various sized units (25 to 200 sq.ft.) which are rented out on a weekly basis. Our queries are as follows.
First, would capital allowances be claimable on the mezzanine floor and/or the cost of the individual units? The floor and units would not be moveable once in place, although they could be dismantled and moved. (In such a case their second-hand value would be very low.)
We have a client who is commencing a 'self storage business' which basically involves the acquisition of a warehouse and the installation of a mezzanine floor. The floor space is then divided into various sized units (25 to 200 sq.ft.) which are rented out on a weekly basis. Our queries are as follows.
First would capital allowances be claimable on the mezzanine floor and/or the cost of the individual units? The floor and units would not be moveable once in place although they could be dismantled and moved. (In such a case their second-hand value would be very low.)
Secondly customers would be mainly non-VAT registered and presumably storage charges would be exempt. VAT would however be charged on the cost of the mezzanine floor and units which would not be reclaimable. Do readers have any thoughts as to how this high VAT cost...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
