Over the last 10 years successive governments have replaced a lot of outdated public buildings through the use of Private Finance Initiatives (PFI Schemes). The schemes have a number of complexities however one benefit where the “composite trader” route is not used is that the company that owns the property can claim the benefit of Capital Allowances in relation to the fixtures of the property.

This is a particularly useful mechanism in making this type of development feasible. Buildings procured under PFI schemes will usually have a high level of mechanical and electrical installations included as part of the project as well as bespoke elements that are required by the incoming public tenant.