Different kinds of capital allowance for offices

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Purchase of a property
If businesses or individuals purchase a commercial property, it is very likely that capital allowances are claimable. Allowances may be claimable in respect of items in the property at the time of purchase. However, this is subject to these items having not been claimed by the previous owner, and will almost certainly be claimable on any improvement costs after purchase.
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PEFFs
Property Embedded Fixtures and Fittings or PEFFs for short, are the plant, machinery and fixtures that are embedded in a building. Fixtures and fittings relate to anything that is ‘fixed’ into the property, so they could be nailed or bricked in. For example, radiators, lighting, ironmongery to doors and windows, and lifts.
At CARS, when explaining PEFFs to our clients, we always use the same analogy. ‘If you tipped the building upside down, everything that remains in the building could qualify for tax relief, when we consider how these items allow the business to trade from that building’.
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SBA
Structures and Buildings Allowance is claimable when a party pays the costs of renovations or the building of a commercial property. Individuals can claim costs which also include the preparation of the site. In addition to construction works, renovations, and fitting-out works. If you bought the structure from a developer, you can claim SBA on the price you paid the developer.
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5 December 2023
Capital Allowances Manual
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22 November 2023
Autumn Budget 2023: Changes to Capital Allowances
The Autumn Budget of 2023 has arrived, and with it comes significant changes and developments the government has put in place. Chancellor Jeremy Hunt delivered the statement on Wednesday, 22 November 2023. For businesses and individuals alike, these adjustments in tax policies can have far-reaching implications.
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