A proportion of the cost of your office refurbishment is likely to be eligible for tax relief in the form of capital allowances.
It is a complicated area, as the allowances themselves relate only to certain capital items and not to work that either constitutes repairs, or relates to the fabric of the building.
In essence, the Inland Revenue takes the view that throughout the life of your business you will make investments in fixed assets that will enable you to run that business. As you use the assets, their value may decline, and this reducing value would be reflected in your profitability.
Capital costs are, however, not directly tax deductible like overheads and so instead a relief is given by way of capital allowances.
Although you are not allowed to deduct capital expenditure directly from your taxable profits, you can deduct the capital allowances and it would be worth discussing the opportunities with your office refurbishment partner’s finance experts, or your accountant, to ensure you maximise the full potential of the allowances as they relate to you and your office refurbishment.
Maris Interiors LLP is the UK’s leading specialist in workplace consultancy, workplace optimisation, office design, office refurbishment, office fit-out and office relocation. Maris design and create world class working environments for occupiers throughout the UK and continental Europe. The Maris team of experts has extensive and in-depth knowledge of how good office design and fit-out can substantially improve business performance, save vast amounts of money and help retain and attract key people.
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