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Tax relief on replacing a retail floor

Shop refurbishment and treatment of floor replacement

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Small cafe had a tiled floor in existence for 10 years.

It carried out a refurb - screeded over the floor and stuck down Karndean tiles (luxury vinyl floor) on top.

Would this be classed as repairs or capital? It's not an exact like for like replacement but just wondered whether it could be argued as a modern equivalent replacement and therefore treated as a repair?

Or are we looking at capital and as it is stuck down then there are no capital allowances available?

 

 

Replies (11)

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By 356B
22nd Jun 2021 11:09

Can't see it being anything other than a straightforward repair.

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Replying to 356B:
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By The Dullard
22nd Jun 2021 13:51

That's strange, I can't see it as being anything other than a straightforward improvement to the existing functioning floor.

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Psycho
By Wilson Philips
22nd Jun 2021 14:08

I don't agree with either that it's straightforward. But without seeing exactly what was there before, its condition etc (and knowing nothing about the quality of the new flooring) I'm leaning towards revenue.

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RLI
By lionofludesch
22nd Jun 2021 17:04

I don't know enough about floors to say whether its a modern equivalent.

Was the existing floor considered "luxury" at the time it was put down ? If it was, I'd vote yes. If it wasn't, I'd invite further arguments from the taxpayer.

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By 356B
22nd Jun 2021 20:13

I think Conn v Robins Bros Ltd is in point. Replacement with modern materials doesn't make the expenditure capital.

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By Alwaysreading
23rd Jun 2021 09:49

Just normal tiling. The floor is 10 years old so there was obvious wear and tear but I am sure it could have lasted longer.

However these LVTs are somewhat easier to clean and maintain hence the replacement.

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Replying to Alwaysreading:
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By lionofludesch
23rd Jun 2021 10:04

Alwaysreading wrote:

Just normal tiling. The floor is 10 years old so there was obvious wear and tear but I am sure it could have lasted longer.

However these LVTs are somewhat easier to clean and maintain hence the replacement.

You're not helping yourself here.

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Replying to lionofludesch:
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By Alwaysreading
23rd Jun 2021 12:50

Having spoken to the client I am told it was a case of either re-tiling the floor or screed/LVT and second method was cheaper.

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Slim
By Slim
23rd Jun 2021 10:00

LVT is marketing bs it's vinyl tiles

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By lionofludesch
23rd Jun 2021 10:03

Do you still slop some soapy water on and mop it up ?

If so, it's a repair.

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By Leywood
23rd Jun 2021 11:08

Exactly.

Its not an equivalent product.

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