Are capital allowances available on the purchase and fitting of doors?
One of the useful things about studying “Google Analytics” for your website is that it does let you know what questions potential clients are looking for when searching the internet for answers.
One question which appears to be regularly asked is whether doors attract capital allowances? The answer to this, as with many other things connected with capital allowances, is not all together straight forward.
Generally speaking the answer would be no.
In the majority of cases capital allowances are not claimable on doors but fittings such as door locks, handles, kick plates and door closers are claimable. The door itself is considered to be part of the structure of the property and therefore does not qualify for Plant and Machinery (P&M) capital allowances.
When may a door be claimable?
However there may be certain circumstances where a door may be claimable i.e. where it’s purchase and fitting are made wholly necessary by the addition of or modification of a qualifying piece of plant and machinery. Therefore in these circumstances it may be claimable as an associated cost in connection with a qualifying piece of plant and machinery.
Another factor which may need to be considered is whether the door is of a specialist nature and whether it qualifies for P&M capital allowances because it is specifically required because of the specialist nature of the trade incurring the expenditure.
Since the introduction of the Integral Features Legislation in April 2008 electrical systems may be claimable where previously they were usually only claimable where connected to a qualifying piece of Plant & Machinery. This means that although a door itself may not be claimable any electrical closing system would be.
A recent tax case which has been ongoing since the 1990s has made decisions in respect of whether JD Wetherspoons may claim certain elements of their refurbishment and redesign costs as P&M capital allowances. Among the items considered were the construction of public toilet cubicles. On this particular item the tax tribunal found in favour of JD Wetherspoons i.e. that the construction costs of the toilet cubicles are allowable as they were associated and made necessary by the sanitary ware which is claimable as capital allowances expenditure. Therefore one must conclude that the cubicle door is claimable as part of the construction costs of the toilet cubicle.
Are you Missing the Bigger Picture?
You have obviously visited this page because you have or are planning to fit or replace doors in a building. However if you own the freehold of the building have you checked to see whether capital allowances have ever been claimed on the “plant & machinery fixtures in the property?”. This is where the majority of our work is concentrated because, it more often than not, produces large tax savings for our clients. If you own the freehold of a property or have a long leasehold then why not complete our “Free High Level Review Form” to ensure you are maximizing your property related tax relief.