What qualifies as embedded fixtures and fittings?
To put it simply, if a property was tipped upside down, everything remaining in the building could potentially qualify for tax relief when considering the function these items carry for the trade to operate.
Some items will be claimed through invoices by the accountant and some items will have been either inherent within the property at the time of acquisition or have been subsequently installed (which can make a critical difference to the value when selling the property).
If we were to complete a capital allowance claim on an office building, as an example, let’s look at a selection of some qualifying items.
Claimed through accounting routines:
-
Chairs
-
Desks
-
Computers
-
Printers
Qualifying items embedded within a commercial property:
-
Heating Systems
-
Plumbing Systems
-
Lifts
-
Radiators and Air Conditioning
What items are generally excluded?
There are always exceptions to the rule and for this reason, it’s very hard to identify what items are excluded.
For example, land may be an exclusion, however, alterations to land for the purposes of installing plant and machinery could potentially qualify.
When assessing the expenditure and applying the legislation, it becomes a very complex task to ensure every item is assessed correctly. This requires a good knowledge of past & current legislation, which over the years has become more and more complex. As a result, a good capital allowance specialist is often needed both to maximise capital allowance claims and protect client relationships.
FAQs
I haven’t installed any integral features since buying the property…
You may be able to still make a claim on the ones already in the building! Depending on the year of purchase of the property then it should be considered as to whether the previous owners have already claimed the PEFFs within the property. Providing this previous history can be proven then the new owners could be entitled to the tax relief available.
I’ve been told I’m out of time and can’t make a claim…
If your property was purchased prior to 2014, there are no time restrictions.
If your property was purchased after April 2014, there could be a 2-year time restriction to making a claim. However, this doesn’t always apply as different factors need to be considered relating to the property purchase. Therefore, we encourage all purchases to be reviewed to avoid any assumptions being made.
There are no time restrictions to making a claim against any property improvements made, as long as these are paid for by the property owner, not by a tenant.
If you would like to see if there are items that qualify for tax relief within your commercial property, please get in touch with our team here.
Latest News
-
2 May 2024Taxation of the Furnished Holiday Let (FHL) Regime Debate
On Wednesday 1 May 2024, there was a debate that took place at Westminster Hall on the taxation of furnished holiday lets following the announcement of the abolishment of the Furnished Holiday Regime during the Spring Budget 2024. We’ve included below the transcript of the discussion (taken from... -
18 April 2024
A Conversation with Nicola, of Hall Livesey Brown
As a Chartered Accountant at Hall Livesey Brown, Nicola Carter provides us with a glimpse into her experience as an accountant. With nearly 20 years at the firm, she shared her journey and the challenges she’d faced. Plus, we look at the pivotal role external support has played in optimising capital...
Contact Us
Our expert team are here to help answer any of your capital allowances questions or enquires you have about your commercial property.