Capital Allowances - Offices

Two units in Oxford were converted by the owners into serviced offices. The total fit-out expenditure across the two units was £501,703. We analysed the expenditure and produced a detailed report which identified £223,258 of qualifying capital allowances. This represents a tax saving, over time, of £44,651 for 20% taxpayers.

Capital Allowances Offices

A fairly straightforward claim for two office units at Rotherbrook Court, Petersfield, Hampshire. Total cost of acquisition was circa £625k and the capital allowances identified were £145k. This equates to a tax saving of £29k over time at an income tax rate of 20%. The owner was the landlord of the properties as opposed to the tenant. In one of the properties the tenant had spent money on air conditioning amongst other things but the capital expenditure for this would be claimable by the tenant and not the owner.

This large office building located in outer London cost the owners just over £4m to purchase. After establishing that the owners limited company was entitled to make a full capital allowances claim, we surveyed the property and produced a full disclosure capital allowances report. The claim identified £1.017m of previously unclaimed capital allowances. This equates to a potential tax saving over time of circa £200k .

A national organisation with seven offices spread across the UK. The value of the portfolio was in excess of £4m, and we were able to identify £550k worth of capital allowances. This equates to a total tax saving over time, at 20% corporation tax, of £110k. We were slightly disappointed by the result, in this case caused by the high cost of their London Office where it is not uncommon for the price of the land to make up 40% to 50% of the overall purchase value of the property. The significance of this is that it reduces the percentage that can be attributed to plant & machinery (p&m) attracting the capital allowances. The client, however, was delighted!

“Offices, whether owned by a company which trades from the premises, or a landlord who lets them out, represent an excellent opportunity to make a capital allowances claim”