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New wood floor in commercial premise disallowable?

Part wood / part laminate flooring replaced with new wood dancefloor. Zero tax relief?

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In a commercial premises, the new business tenant has had a new wooden floor installed to make the unit suitable as a dance studio.

Previously,  half of the unit had a sprung wooden dancefloor but it was old and damaged.  The other half of the unit had cheap laminate wood flooring installed by the previous tenant, which was also in a poor state of repair.   Upon taking on lease of the premises, the new tenant had a new permanent wooden floor installed in the entire unit.  It is the same colour wood as the original old wood dance floor, but now extends the entire length of the premises. 

I understand that flooring does not meet the definition of “integral features” for capital allowances and cannot be claimed as Plant & Machinery. Is that correct?

And I understand that to be claimed as a Repairs expense, there is a "like for like" requirement? Given that the original flooring was part wood and part laminate, but the new floor is all wood, does that invalidate the "like for like" requirement and make this a disallowable expense?   Or does the high quality of the new floor, replacing the especially shoddy old floor, define this as an "improvement" and therefore disallowable on those grounds?   

Is there any way to get tax relief on this new dancefloor for a dance based small business? 


Replies (5)

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By bookbee
16th Apr 2021 18:41

Since the taxpayer's trade is dance classes, could the dancefloor be defined as plant on the basis of the function test?

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By The Dullard
16th Apr 2021 19:28

Repairs, not a chance due to the extended coverage. There is a case regarding a building that was in need of having its roof replaced (a repair), in the course of the work it was decided to enlarge the building by, say, 25% (not sure if that's factually accurate), meaning that it needed a bigger roof. A deduction for, say, 2/3rds of the roofing cost was claimed. Held you can't claim for a notional repair. The whole cost was capital.

P&M allowances may be a possibility. Check the artificial playing surfaces cases.

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paddle steamer
14th Feb 2022 12:51

Is there any relationship between the works being needed in terms of the new lease and any rent free periods allowed , impact on deemed lease premiums paid etc?

If the landlord had himself replaced the floor prior to the lease would you consider that was a repair in whole or part for the landlord?

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By Tax Dragon
14th Feb 2022 14:56

Stereo spam.

.oO Desperate times for snake oil salespersons.

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By SouthCoastAcc
14th Feb 2022 18:54

making a song and dance outta this

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