Designing Your Workspace
Designing a workplace, in any business sector, to meet the needs of your people has so many benefits, but your new workspace fit out can be expensive. However, items such as air-conditioning, carpets and WCs can qualify for capital allowances and can save you some tax.
Many business owners or property investors are aware that they get tax deductions for what is deemed a ‘repair’ and goes through their profit and loss account. Fewer are aware of Capital Allowances, a form of tax relief which can provide a valuable tax saving if claimed on certain property expenditure.
Maximising Your Allowances
Capital allowances should be considered early, ideally at the design stage of any works to maximise relief. This is especially important as the allowances can be enhanced by claiming costs incurred on installing any plant and machinery within an existing building; something not available on new constructions, eg lift cores or holes for piping.
Inducements
In addition, as a tenant you may be offered some form of inducement to take the lease or as a landlord offer one to a induce a tenant. Consequently, when negotiating such a deal it is essential the tax implications are fully considered before anything is agreed. Different offerings eg capital contributions, rent free periods all have complex issues around claiming capital allowances.
