Have You Considered Capital Allowances?08-05-2018
The cost of an office fit-out or refurbishment could vary depending on the budget. However, did you know that there is a form of tax relief available for these kinds of projects?
Capital allowances are a form of tax relief given for expenditure on commercial property for both the owners and occupiers of the building. Essentially, it’s a benefit for helping to increase the country’s economy.
They are accessible for UK and overseas tax payers and are available for;
- New builds
- Property acquisition
- Property sale
You can also claim capital allowances when you purchase assets which will be used for your business. These are called ‘plant and machinery’, and they can include, for example;
- Cars, vans or lorries (for business use only)
They can drastically save companies money and the savings could be used for other areas of the business such as marketing the office or recruiting more employees. Up to 90% of expenditure on office refurbishments and fit-outs could qualify for capital allowances1.
Many people miss out on the tax relief because they are simply unaware it exists. Approximately, only 60% of people who are entitled to capital allowances actually claim, and astonishingly half of those claim too little2.
To ensure you don’t miss out, it’s vital that you declare all of the costings when completing your tax return form. For more information on capital allowances, visit the GOV.UK website.