That's entertainment

My client is a limited company that supplies and installs high spec home theatre and entertainment systems.

The three directors have recently acquired a residential property with ownership split equally amongst them and the property is mortgaged.

The directors plan on turning the property into a 'show house' for the company's entertainment systems with the idea being that members of the public will come and view the house and sample the sound and visual products etc. My question surrounds the tax treatment of the renovation costs on the property and on the installation of the 'show house' equipment and furniture.

Am I right in thinking that if the directors don't actually live there then if the company pays for the renovation costs of the property there shouldn't be a problem with the company claiming input VAT on the renovation costs (as the building is being used...