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bigduckontax
bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 2989
Experience:  FCCA FCMA CGMA ACIS
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I have a small property company which bought a freehold

Customer Question

I have a small property company which bought a freehold propertyand rented it out as a restaurant. we lent money to the Restarateurs to refurbish the premises Does a property attract any FYA or other capital allowances other than those that can be obtained
by having a surveyor value the "hidden" F&F ?
Submitted: 1 year ago.
Category: UK Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Property in itself does not attract any Capital Allowances. The F&F probably do come under the very wide definition of plant and machinery, in which case Annual Investment Allowance (AIA) is available up to 250K [Jan 13 - Apr 14] or 500K [Apr 14 - Dec 15]. Pinsent Masons, Solicitors warn however, of lower rates for certain items viz:

'However, certain assets in a building are designated as 'integral features' and qualify for allowances at the lower special pool rate if expenditure was incurred in respect of them on or after 1 April 2008. The following are designated as integral features:

  • an electrical system (including a lighting system),
  • a cold water system,
  • a space or water heating system, a powered system of ventilation, air cooling or air purification, and any floor or ceiling comprised in such a system,
  • a lift, an escalator or a moving walkway,
  • external solar shading'

Of course these may not affect your company

I do hope that my reply has been of assistance.

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