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Are these allowable capital expenditures for a jewellery retail shop?

Are these allowable capital expenditures for a...

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A Sole trader of a jewellery retail shop…

Can we consider the following as allowable capital expenditures?

1- Internal secured door

2- Steel bars and sheets structure backing a shop’s plasterboard wall; for the purpose of securing the shop stocks and assets.

Any help is highly appreciated 

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By ATS_ACCA
31st Mar 2015 10:15

Hi there,

If these 2 expenditures for personal safety of the individual running the business, I think yes we can consider them as allowable capital expenses.

Generally, the internal secured door is an allowable capital expenses. But, I'm not really sure if we can consider the steel structure as a capital expenses.

However, I leave it for many other members of this forum who have more experience than mine to give you an advice.

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By Portia Nina Levin
25th Apr 2015 11:34

(No subject)

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By JamesAnd
31st Mar 2015 12:08

If the doors were fire doors then they would qualify.

How easily removable are the bars and shutters without causing damage to the walls to which they are attached? If not easily removed then HMRC would try and argue they have formed part of the structure of the building and thus not qualify. Basically, apply the same rules as you would to partitioning.

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Replying to paul.benny:
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By Portia Nina Levin
25th Apr 2015 11:35

(No subject)

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By JamesAnd
31st Mar 2015 12:36

s23 CAA  (list C I believe).

s23 CAA  (list C I believe).

The bars and shutters sound like they are being used as an "extra layer of security" which is why I have said I feel they would need to be easily removable so as to stop HMRC arguing they have formed part of the fabrication of the building and not qualify as an integral feature.

I agree on sound insulation as this also comes under list C

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By Portia Nina Levin
25th Apr 2015 11:35

(No subject)

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By JamesAnd
31st Mar 2015 12:52

I have had to go and look it up -  "other equipment used to extinguish or contain a fire" And from experience I have never had a problem with such a claim.

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By Portia Nina Levin
25th Apr 2015 11:36

(No subject)

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By Younis
31st Mar 2015 13:08

Thank you all for your advices,

After speaking to the client, she confirmed that the steel bars and shutters are fully attached to the plasterboard wall and became integrated part of the shop's wall.

@ Portia

Hi Portia; can we argue that the internal secured door goes under the concept of "strong rooms" of banks and building society, bearing in mind the activity of the business and for security purpose?

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By Portia Nina Levin
25th Apr 2015 11:36

(No subject)

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By JamesAnd
31st Mar 2015 13:51

Yes - provided they keep it shut of course!

I don't see that the FA08 changes has removed these from list C or am I wrong?

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By JamesAnd
31st Mar 2015 14:02

If they have become part of the shops walls HMRC will contest that they have become part of the fabric of the building and challenge your claim.

It is exactly the same principle as for floor tiles and splash back wall tiles (JD Wetherspoon case).

You would have to show that they can easily be removed without causing damage to the walls.

What do these things do other than stop people from being able to break in? I do think these are different from panic rooms

No harm in trying to claim. Just be prepared to be able to argue that they are plant and not part of the building.

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By plummy1
01st Apr 2015 11:57

I agree and disagree

We would claim for the additional security measures on the walls and doors in this instance arguing, as previously stated, that they are a specific requirement of this trade.

We do not claim claim for fire doors.

John

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By JamesAnd
01st Apr 2015 12:31

The inference from the OP is that the steel bars and shutters have been fixed permanently to the walls so more clarification is needed on this before agreeing a capital allowances claim.

S.21 CAA specifically exempts shutters from capital allowances if they are deemed to be part of the building.

However, what I think maybe the case here is that they have been bolted over the existing doors, walls or windows and could be removed perhaps only causing superficial damage. If this is the case then I would agree that capital allowances could be claimed.

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