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Is your building eligible?

Most commercial property transactions do not break down the value of individual fixtures and features. You pay the price of the building and accept that it’s not eligible for tax relief.

However, if the plant and machinery within that building is kept for use in your business it can qualify for capital allowances. A warehouse might be little more than a shell, but an office building with fitted facilities, carpets, lifts and fire alarms offers great potential for relief.

The legislation describes fixtures as any plant or machinery that is “installed or otherwise fixed in to a building” so it becomes “part of that building”.

To qualify, you or your company must own a commercial property purchased for at least £100,000 and be paying Income Tax or Corporation Tax in the UK.

Unfortunately, residential conversions are not eligible for Capital Allowances, even if you buy to let. However, a building that is converted into a hotel, bed and breakfast, nursery or other commercial space is eligible. You can claim on the value of items in the building when you bought it, but not on anything you install since or on the cost of conversion.

  • Fitted kitchens
  • Bathrooms suites
  • Fire alarms
  • Burglar alarms
  • CCTV

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