Can you claim tax relief on refurbishment costs

Can you claim tax relief on refurbishment costs

…and how can you ensure your business survives?

Many Scottish business owners are considering refurbishing their premises, and so the ad+ tax team is often asked for advice on what expenditure will be eligible for tax relief?

Get the right advice

ad+ has helped many business owners with all aspects of tax relief claims. Refurbishments can disrupt normal working arrangements within your business, and that can lead to significant dents in cash-flow. Add that implication to the requirement for additional capital to pay for the refurbishment, and you can appreciate why ad+ believes that business owners should sit down with us to examine the financial consequences of refurbishments.

ad+ will incorporate all the capital costs and cash-flow changes into one comprehensive financial model of your business so that we can help you devise the optimum plan to ensure your business benefits from the newly refurbished look.

The ad+ team has extensive experience advising businesses that have completed refurbishments on their restaurants, factories, offices, and nursing homes located in Glasgow, Lanarkshire, and Renfrewshire.

Claiming relief on refurbishment expenditure

You can claim a full tax deduction for all expenditure on repairs to your building that are incurred in an accounting period.

Alterations to a building will be treated as ‘capital expenditure’. This means that the expenditure does not qualify for a tax deduction against profits but may eventually get tax relief for capital gains tax as an ‘improvement’ to the property.

Not all fixtures qualify for capital allowances but many do.

Expenditure on fixtures covers a wide variety of items, from lights and boilers, to toilets and other sanitary ware. Different types of business will require different fixtures and you should check whether your chosen items qualify for capital allowances.

Potential pitfalls

It may seem that both repair expenditure and expenditure on fixtures are equally valid ways of receiving a 100% tax break on your investment. However, it is important to bear in mind that different tax rules apply to expenditure on fixtures, alterations and repairs to your business premises.

Careful planning can help you to maximise the relief available, and help your new-look business to succeed.


If you would like to arrange a meeting to discuss this matter, or would simple like more information, please get in touch:
Phone: 0141 643 9200

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