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Commercial Property Fit-Out

Updated: Apr 19, 2023

Did you know that you could be eligible for significant tax savings if you have recently fit-out your commercial premises regardless of whether you own or lease it?


When a business completes a fit-out of a commercial property, they may be able to claim capital allowances on certain items of plant and machinery that are installed as part of the fit-out, in turn saving thousands of pounds on its tax bill.


The following is a list of some of the items of plant that are eligible for capital allowances:

  1. Heating, ventilation, and air conditioning (HVAC) systems

  2. Electrical systems, including wiring, lighting, and power outlets

  3. Lifts and escalators

  4. Security systems, including alarms, CCTV, and access control

  5. Fire protection systems, including sprinklers and fire alarms

  6. Plumbing and water systems

  7. Kitchen and catering equipment

  8. Sanitaryware, including toilets, sinks, and showers

  9. Data and communication systems, including cabling, networking, and telephony

  10. Renewable energy systems, such as solar panels and wind turbines



"The average capital allowances claim on a fit-out generally exceeds 60%-70% of the total investment and for small/medium businesses can be claimed at first instances, in full, under the £1,000,000 annual investment allowance."



Businesses of all shapes and sizes can claim capital allowances on fit-outs and includes sole traders, Partnerships, Limited Companies and encompasses both freeholder and leaseholder expenditure.


Example of tax savings from a £200,000 fit-out:

Total fit-out cost

£200,000

Qualifying plant

£145,000

Non qualifying/structure*

£55,000

Total tax relief at basic rate

£29,000

*It's important to note that not all of the expenditure will be eligible for capital allowances, and the specific eligibility criteria can be complex.


So what does this mean for you? It means you'll have more money in your pocket to invest back into your business with improved cash flow, increased profitability and even the competitive edge over other businesses in your industry.


A point to consider....


By not claiming capital allowances on your commercial property fit-out, you are potentially losing out on a significant amount of money that you are entitled to off the back of your investment. In fact, failing to claim capital allowances has one result, your business overpaying tax!


How we can help:


At JNC we use advanced technology and data analysis tools paired with decades of experience to ensure accuracy and efficiency in the identification and valuation of your qualifying assets. We work closely with you to gather all necessary information and documentation, and we handle all aspects of the claim process, from start to finish.


Start the process today and see if your business qualifies for capital allowances.




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