Shop fit

Shop fit

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I have spent money fitting out my shop (rented premises).
I have been told that because the expenditure is capital (enhancements) I get no tax relief?
This does not seem fair.

Would it help if I got it invoiced as repairing and renewing?
Steve

Replies (4)

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By adam.arca
19th Mar 2006 13:05

Agree
I agree with Nigel's comments (and any other qualified accountant will do so also on the strength of what you've said).

Unfortunately, this is the real but unfair world of tax. What you've done is incur expenditure on the setting (on which, broadly, you get no tax relief unless it's an industrial or agricultural building) rather than tools with which you trade (where you would, broadly, get tax relief but not all at once).

Having the invoice reworded would be fraud and would not help anyway: any expenditure like this prior to trading is putting you in a position to trade and therefore capital; it would need to be incurred whilst trading to even have a chance of counting (and wouldn't even then in these circumstances).

It's not just because accountants want to make money that we advise people to see us first before commencing a project! You probably would still have gone ahead, but at least you wouldn't have had a nasty surprise after the event.

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Me!
By nigelburge
19th Mar 2006 12:32

It would help you to go directly to jail and not collect £200!
If you knowingly evade paying tax, you have committed fraud which is a criminal offence.

Fairness has virtually nothing whatsoever to do with Tax.

If you have received competent professional advice that your expenditure is capital, then follow it.

If you have reason to doubt that the advice you have received is correct, then get a second opinion from a qualified and reputable tax advisor.

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By AnonymousUser
20th Mar 2006 19:44

Refurbish - CAs
Clare mentioned Capital Allowances.
These are available on Fixtures & Fittings - not on the work on refurbishing the shop e. g. building a wall. If you have a contractor who for example carries out the building work AND work such as new counters, ensure that these are easily identified on his invoice (or invoiced separately)so that you can claim CAs on the F&F element.

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By AnonymousUser
19th Mar 2006 13:02

You do get tax relief...
If this is capital expenditure, you will receive some tax relief on the expenditure by way of Capital Allowances. Get your Accountant to explain this to you.

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