Skip to main content

THE CAPITAL ALLOWANCE ACT 2001

FIT OUTS AND REFURBISHMENTS

When undertaking fitouts and refurbishments, there’s more than just the aesthetic or functional appeal to consider. This is an opportune time for businesses to capitalise on available tax reliefs, ensuring they maximise their financial gains from the venture.

With the right insight, businesses can not only transform their properties but also drive economic efficiency through savvy tax strategies.

Modern open-plan office space eligible for Capital Allowances

CAPITAL ALLOWANCES ON FIT-OUTS AND REFURBISHMENTS

LEVERAGING TAX ADVANTAGES DURING RENOVATIONS

The journey of refurbishing or fitting out an existing property is not just about altering its physical appearance. It’s a strategic play that involves understanding underlying construction principles, classifying expenditures correctly, and harnessing the potential tax benefits.

Key considerations include:

  1. Works Incidental to Installation or Removal of Plant:
    Frequently, businesses overlook or underutilise the tax reliefs available for works incidental to the installation or removal of machinery or equipment. For instance, while a new lift shaft’s construction might not qualify for capital allowances in a new building, it would qualify in an existing one because the work is incidental to the lift installation.
  2. Repairs & Maintenance Expenditure:
    Properties in use or deemed usable can harness significant tax advantages if their refurbishment works are categorised as ‘like for like’ replacements or as their ‘modern day equivalent’. Proper categorisation can lead to full deduction benefits for these expenses.

However, diving into the complexities of Capital Allowances for fit outs and refurbishments requires expert navigation. While some costs can be treated as revenue items, others need to be capitalised. The thin line separating the two often requires thorough scrutiny and understanding.

Just as Full Expensing offers businesses a chance to drive down their tax liabilities, Fit outs and refurbishments have their own set of advantages in the realm of capital allowances. Different types of Capital Allowances, be it Annual Investment Allowance (AIAs), Writing Down Allowance (WDAs), or First-Year Allowance (FYAs), each offer specific benefits. The key is to identify which ones align with your refurbishment plans.

At HMA Tax, our team is equipped with the knowledge and expertise to assist businesses in harnessing the full potential of their fit outs and refurbishments. From categorising expenditures to ensuring every available tax relief is capitalised upon, we’re here to ensure your renovation ventures are both visually and financially rewarding.

PARTNER WITH EXCELLENCE

THE UK'S LEADING CAPITAL ALLOWANCE SPECIALISTS

With over 7,000 claims completed, HMA Tax is trusted by thousands of commercial property owners, Accountants & Solicitors across the UK.

Our service is guaranteed to be fully HMRC compliant, meaning our clients have peace of mind when claiming their Capital Allowances with the UK’s leading independent specialists.

We regularly handle Embedded Capital Allowance claims for commercial property owners and property professionals, ensuring that they are processed quickly, efficiently and effortlessly.

Has my accountant already done this?

Probably not. It’s a highly specialised area of tax statute and requires very specific knowledge of this area as well as a specialist team that includes a chartered surveyor and a chartered tax specialist.

Will this affect Capital Gains Tax (CGT) on my property?

No, Capital Allowance claims do not effect the value of your property and have no impact on your Capital Gains position.

In fact, when buying or selling commercial property, a Capital Allowance claim from HMA Tax can have a positive impact on your overall position.

Will this cause a problem with HMRC?

Capital Allowances are part of standard business routines and are therefore claimed each year against cost clients incur to operate.Β  HMRC does not take issue with Capital Allowance claims on the basis we adhere to guidelines and the legislation applicable to each claim.

Fortunately, at HMA Tax we have a flawless, 100% success rate with claims we have made to HMRC and have never had an issue completing a claim with HMRC.

Are there any hidden costs?

Absolutely not. We look at claims for you on a results only basis, which means that if we do not find allowances that have been approved by HMRC, then we charge you nothing and any initial costs are covered by us. Our fee is completely linked to a successful outcome, so there is nothing to lose by investigating a potential claim.

CLAIM THOUSANDS OF POUNDS IN TAX RELIEF

ESTIMATE YOUR CAPITAL ALLOWANCE CLAIM IN TWO-MINUTES

Get Started

RECENT CLAIMS

Read our recent industry news and insights, written by our own
Capital Allowance specialists.

Legislation

Understanding First Year Allowance (FYA)

When completing a Capital Allowance claim, the First Year Allowance (FYA) stands out as an…
News

Chinese Developers continue UK Commercial Property Retreat: The Importance of Capital Allowances in a Shifting Market

Chinese developers are reducing their investments, marking a continued retreat from the UK real estate…
News

CPD-Ready HMA Tax Raises the Bar in Capital Allowances

As the UK's leading Capital Allowance specialist, HMA Tax has achieved a significant milestone by…