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Writing down cost of building
Writing down cost of building
By Marie walshe In Property Posted March 16, 2018 0 Comments

I have a limited company client who owns a couple of rental properties (one commercial, one residential). There’s no re-valuation reserve. They’ve just had valuations done which show the market value at 10% below the carrying Net Book Value.  What should I do?

Sounds like time to blow the dust of that copy of SSAP 19, you’ve inevitably got lying around in a cupboard somewhere by the sound of it. SSAP 19 is the Accounting standard for Investment Properties. You mean there’s a standard. Yes. Investment properties are interests in land and/or buildings that are held for their investment potential, rather than for consumption in the business operations. In such cases the current value of these investments, and changes in current value, are of prime importance rather than a calculation of systematic annual depreciation.  Gosh, that’s a lot to take in at once.

If it’s all too much, put on a cup of tea and leave it to Marie at mariewalshe@certax.co.uk

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