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Capital Allowances on leasehold improvements

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I have a first year company that have leased a building and are creating a 'showroom' to open up a shop later in the year. 

Are they able to claim CA's on expenduture to improve this building if they are leasing it and don't own it? 

I believe I read that it is the owner of the commericial property that can claim - but can the tenant's if they are incurring the cost?


Any advice or guidance appreciated. 

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By David Henry
22nd Sep 2020 08:32


Yes, tenants can claim capital allowances on fit out expenditure as long as they have a relevant interest in the land (e.g. a leasehold) and have incurred capital expenditure. What relief they get will depend on the nature of the works undertaken.

Hope that helps.

Thanks David

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Replying to David Henry:
By Piltdown Man
06th Oct 2020 13:36

I agree with David,
Given the availability of generous AIA allowances for a little while longer some consideration may need to be given to the ARD if the trade is expected to commence sometime during the first period.

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