Total 54k advance Rent and premium paid to lease holder, does this count as investment

[amu123456789]

Hi
My extension is In progress and just came across a query.
I own a event management company and on a rental agreement contract, i got the venue for 5 years from the leaseholder
Total invested 54k which includes 6 months advance rent and premium(goodwill) as venue was properly done with good interiors and tables chairs and other related inventory which I am using for events and functions.
Will this 54k invested money be counted as investment as per guidelines.
Please advice.
Thanks

[marcnath]

Hi
My extension is In progress and just came across a query.
I own a event management company and on a rental agreement contract, i got the venue for 5 years from the leaseholder
Total invested 54k which includes 6 months advance rent and premium(goodwill) as venue was properly done with good interiors and tables chairs and other related inventory which I am using for events and functions.
Will this 54k invested money be counted as investment as per guidelines.
Please advice.
Thanks

It is not straightforward.
The condition is that any money that goes to the previous owner when you buy a business is not counted.
But, from your description, it does not appear to be that way. Your business has bought the lease, not the business I assume.
If so, it will be counted as investment

[amu123456789]

Hi
Thanks for the reply
Yes ..the main leaseholder has the permission to sublease the venue as it's too big .
So downstairs he runs his own restaurant and upstairs we got it on rental contract on 5 years term and we run the cartering and events business.
Hope that's ok
.

[marcnath]

Hi
Thanks for the reply
Yes ..the main leaseholder has the permission to sublease the venue as it's too big .
So downstairs he runs his own restaurant and upstairs we got it on rental contract on 5 years term and we run the cartering and events business.
Hope that's ok
.

I think you could argue it to be a legitimate business expense, so in my opinion it should be ok.

But if you have submitted documents, accounts, etc that mention Goodwill, then it may raise questions and there is a possibility HO can seek to exclude the amount attributable to goodwill.

You would have grounds to argue against it, but it will be interesting to see how it will get handled.