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Principal property taxation allowances
Capital First year/initial (%) Subsequent years (%)
Scientific research 100 –
Enterprise zone 100 –
Machinery and plant 25* 25**
Long-life plant 6 6**
Industrial building/hotel 4 4
Revenue    
Maintenance and repair 100 –
*40% first-year allowance for small to medium-sized firms (100% in Northern Ireland)
**percentage of allowable expenditure remaining each year (reducing balance)
Legal tests of the definition of plant eligible for tax allowances
Test Case reference Outcome
Entity CIR vs Barclay Curle Complete entities/systems or, in this case, a dry dock, can be allowable
Premises Benson vs Yard Arm Club Premises in which a business is carried out, such as the shell and fixed finishes of a building, are not allowable
Setting Cole Brothers vs Phillips Items that are part of the setting, in this case general lighting, are not allowable
Function Hampton vs Fortes Autogrille Ltd A suspended ceiling acting as a decorative covering only was not allowed, because it served no function in the business
Amenity Cooke vs Beach Station Caravans Amenities provided for use of customers, such as, for example, a swimming pool in a caravan park, are allowable
Remoteness Ben Odeco vs Powlson Interest on borrowings is not allowable. It is too remote a cost
Ambience Wimpy vs Warland Items that create ambience, such as decorative lighting and pictures, are allowable, if the trade involves attracting customers
Table 1: Refurbishment and developer's fit-out
        tax relief status  
  element
cost
£		 cost/m²
gfa
£		 %
of total
cost		 revenue
expenditure £		 plant/
machinery
expenditure £
Demolitions and alterations 527 500 36.38 3.27 10 000 130 500
Demolitions; strip back to structural frame and upper floors; generally     14 500 m²@ £12 no no
Demolitions; works associated with machinery and plant;
stripping out M&E installations, lifts and sanitary fittings		     14 500 m² @ £9 no yes
Alterations and enabling works; generally     14 500 m² @ £14 no no
Repairs to party walls     Item @ £10 000 yes no
Allowance for exploratory work     Item @ £10 000 no no
Substructure 15 000 1.03 0.09 15 000 0
Repairs to existing waterproofing to basements     Item @ £15 000 yes no
Frame 200 000 13.79 1.24 0 75 000
Alterations and making good existing reinforced concrete frame     Item @ £65 000 no no
Allowance for new steel structure     50 tonnes @ £1 200 no no
Altering door openings for lifts     Item @ £75 000 no yes
Upper floors 23 500 1.62 0.14 0 0
New insitu concrete floor slabs; reinforcement @ £30 kg/m2     135 m² @ £100 no no
Preparation of existing sub-floors     Item @ £10 000 no no
Roof 176 600 12.18 1.09 150 000 0
Replacing existing roofing; two-coat mastic asphalt, insulation,
vapour barrier; includes allowance for upstands and cappings		     1 300 m² @ £100 yes no
Extra for paving slabs; on neoprene support pads     250 m² @ £30 no no
Perimeter safety rails; galvanised steel; average height 1.15 m     225 m @ £85 no no
Repairs to rooflights and roof access hatches     Item @ £20 000 yes no
Stairs 322 500 22.24 2.00 0 2 500
Alterations and making good to existing stairs     Item @ £40 000 no no
Insitu concrete fire escape stair; overall length 6 m     Item @ £2 500 no yes
Contractor-designed mild steel balustrades, stainless steel handrails (cost per storey)     36 @ £5 000 no no
Cladding and balustrades to feature bridge to reception     Item @ £60 000 no no
Allowance for access platforms and stairs to plant rooms     Item @ £40 000 no no
External walls, windows and doors 3 266 700 225.29 20.26 0 3 500
Replacement cladding; granite-faced precast concrete units     2 500 m² @ £650 no no
Replacement punchhole windows; sealed double-glazed units;
thermally broken; bronze anodised finish		     2 800 m² @ £500 no no
Allowance for entrance screens and revolving doors to reception     Item @ £160 000 no no
Marble cladding to entrance and reception     180 m² @ £240 no no
External escape doors; double doors; steel-faced; iron mongery     10 @ £2 100 no no
Allowance for blast shutters and entrance gates to car park     Item @ £14 000 no no
Extra for motors and control gear to shutters and gates     Item @ £3 500 no yes
Internal walls and partitions 160 800 11.09 1.00 0 0
Insitu concrete walls; average 450 mm thick     60 m² @ £120 no no
Blockwork partitions; 140 mm average thickness; head restraint     3 000 m² @ £35 no no
Metal stud partitions; two layers wallboard, each side; insulation     320 m² @ £40 no no
Toilet cubicle partitions     36 @ £800 no no
Melamine-faced solid laminate access panelling to WCs etc     70 @ £100 no no
Internal doors 360 000 24.83 2.23 0 62 500
Flush doors; fire-rated; solid core veneer-faced; hardwood frames;
iron mongery; complete		     350 @ £600 no no
Flush doors; non fire-rated; solid core veneer-faced; hardwood frames;
iron mongery; complete		     175 @ £500 no no
Extra for door closers     525 @ £100 no yes
Allowance for works in connection with security system     Item @ £10 000 no yes
Wall finishes 277 200 19.12 1.72 60 000 0
Allowance for alterations and preparation works     Item @ £22 500 no no
Plasterboard lining to columns     480 m @ £40 no no
Waterproof render to basement areas     480 m² @ £20 no no
Cement:lime:sand backings to walls     1 000 m² @ £15 no no
Ceramic tiles     1 400 m² @ £65 no no
Plaster skim coat     1 600 m² @ £4 no no
Paint finishes; two-coat emulsion     13 350 m² @ £3 no no
Extra for special paint finish to lift lobbies and other public areas     3 350 m² @ £4 no no
Allowance for localised repairs to plaster     2 000 m² @ £30 yes no
Floor finishes 670 400 46.23 4.16 82 000 197 600
Natural stone flooring; granite and marble; including
allowances for beds and skirtings; to reception area		     150 m² @ £220 no no
Allowance for mats and matwells     Item @ £10 000 no yes
Raised access floor; 100 mm deep floor void; including
allowances for cavity barriers; hardwood skirtings		     9 380 m² @ £35 no no
Carpet tile     9 380 m² @ £20 no yes
Granolithic screed; 75 mm thick; to prepared concrete floors in plant rooms     500 m² @ £25 no no
Floor paint; to previously painted concrete     1 000 m² @ £7 no no
Repairs to existing granolithic screeds and skirtings to stairs and landings     650 m² @ £80 yes no
Repairs to retained core floor finishes     Item @ £30 000 yes no
Epoxy floor finish and road markings to car park and
access ramp		     400 m² @ £25 no no
Ceiling finishes 486 000 33.52 3.02 30 000 328 300
Suspended ceilings; perforated metal grid; concealed grid; to office areas;
including plasterboard ceilings to the perimeter; forming return air plenum
as part of air-conditioning system		     9 380 m² @ £35 no yes
Plasterboard ceilings to public areas     1 630 m² @ £40 no no
Allowance for specialist ceiling finish to reception     150 m² @ £100 no no
Repairs to retained core ceiling finishes     Item @ £30 000 yes no
Insulation to car park soffits and other slabs     1 900 m² @ £25 no no
Table 2: Refurbishment and developer's fit-out
        tax relief status  
  element
cost
£		 cost/m²
gfa
£		 %
of total
cost		 revenue
expenditure
£		 plant/
machinery
expenditure £
Furniture and fittings 197 500 13.62 1.23 0 157 500
Reception desk and fittings     Item @ £20 000 no yes
Allowance for furniture to reception areas     Item @ £25 000 no yes
Statutory signage     Item @ £20 000 no yes
Allowance for planters to reception and public areas     Item @ £15 000 no no
Allowance for sculpture to reception area     Item @ £25 000 no no
Mirrors to WCs     Item @ £2 500 no yes
Window blinds     2 800 m2 @ £30 no yes
External signage     Item @ £6 000 no yes
Sanitary fittings 153 200 10.57 0.95 0 153 200
WCs, urinals, washhand basins; generally     210 @ £300 no yes
Allowance for fittings for disabled WCs     Item @ £1 000 no yes
Cleaners’ sinks     12 @ £350 no yes
Vanitory units; granite     70 @ £500 no yes
Allowance for hairdryers and macerators     Item @ £50 000 no yes
Disposal installations 152 500 10.52 0.95 0 51 000
Rainwater disposal; cast-iron downpipes and fittings     14 500 m2 @ £4 no no
Extra for sump pump installation for sub-surface drainage     Item @ £30 000 no yes
Waste, soil and vent installation; vertical stacks in cast iron     14 500 m2 @ £3 no no
Waste, soil and vent installation; connection to stack in uPVC     210 @ £100 no yes
Water installations 131 500 9.07 0.82 0 101 500
Incoming water main and storage tanks     Item @ £30 000 no no
Cold water down service; boosted main; local distribution     14 500 m2 @ £4 no yes
Hot water service; local electric heaters; distribution; insulation     14 500 m2 @ £3 no yes
Space heating and air treatment 2 287 000 157.72 14.19 0 2 287 000
Gas installation     Item @ £11 000 no yes
Low-temperature hot-water heating; boiler plant; stainless
steel flues; distribution within plant rooms		     14 500 m2 @ £15 no yes
Chilled water installation; chillers and heat rejection plant; distribution within plant rooms     14 500 m2 @ £25 no yes
Supply and extract ventilation; air-handling units; heating, cooling
and reheat coils; ductwork in risers and plant rooms		     14 500 m2 @ £16 no yes
Air-conditioning; four-pipe fan coil installation to office space; low-temperature
hot-water and chilled water distribution; condensate drainage;
fan coil units; ductwork; insulation; grilles and diffusers		     10 100 m2 @ £115 no yes
Dedicated ventilation systems (WCs, car parks etc)     14 500 m2 @ £10 no yes
Extra for fire-resistant smoke extract ducts     Item @ £85 000 no yes
Staircase and lift lobby pressurisation     14 500 m2 @ £5 no yes
Electrical installations 1 401 900 96.68 8.70 0 1 048 700
Mains and sub-mains installation     14 500 m2 @ £21 no yes
Small power distribution to landlord’s areas     14 500 m2 @ £7 no no
Small power to office areas     10 100 m2 @ £12 no no
Lighting and luminaires; landlord’s areas     14 500 m2 @ £9 no no
Lighting and luminaires; general office areas; incorporating
return air grilles as part of air-conditioning system		     10 100 m2 @ £40 no yes
Emergency lighting installation     14 500 m2 @ £5 no yes
Lighting control system     10 100 m2 @ £7 no yes
Power to mechanical services     14 500 m2 @ £6 no yes
Standby generation; distribution     Item @ £110 000 no yes
Lift installation 1 120 000 77.24 6.95 0 1 120 000
13-person, electro-hydraulic lift serving 12 floors; 2.5 m/second     7 @ £160 000 no yes
Protective installations 481 000 33.17 2.98 0 437 500
Lightning protection     14 500 m2 @ £1 no no
Earthing and bonding     14 500 m2 @ £2 no no
Sprinkler installation; complete     14 500 m2 @ £25 no yes
Hose reel installation     Item @ £50 000 no yes
Dry riser installation     Item @ £25 000 no yes
Communications installations 350 000 24.14 2.17 0 350 000
Fully addressible fire and smoke detection and alarm system; voice alarm     14 500 m2 @ £15 no yes
Allowance for security, CCTV and access control     Item @ £60 000 no yes
Wireways for telephones, data and structured cable     14 500 m2 @ £5 no yes
Special installations 597 500 41.21 3.71 0 597 500
ºÚ¶´ÉçÇø management system     14 500 m2 @ £25 no yes
Cradle cleaning system     Item @ £235 000 no yes
Builders’ work in connection 334 000 23.03 2.07 0 307 000
BWIC with plant and machinery (allow 5%)     Item @ £307 000 no yes
BWIC with non-allowable services (allow 5%)     Item @ £27 000 no no
Preliminaries and contingencies 2 428 000 167.45 15.06 57 300 1 275 500
Testing and commissioning associated with machinery and plant     Item @ £90 000 no yes
Testing and commissioning     Item @ £10 000 no no
Contractor’s overheads, site establishment, site supervision          
Prelims; in connection with revenue works, plant and machinery
(allow 12%) 		    Item @ £877 200 yes yes
Prelims; in connection with non-allowable works (allow 12%)     Item @ £765 800 no no
Contingency sum          
In connection with revenue works, plant and machinery (allow 5%)     Item @ £365 600 yes yes
In connection with non-allowable works (allow 5%)     Item @ £319 400 no no
Total construction cost
Refurbishment and developer's fit-out only		 16 120 300 1 111.74 100.00 404 300 8 686 300
Tenant’s fit-out
        tax relief status  
  element
cost
£		 £/m² net
lettable
area		 %
of total
cost		 revenue
expenditure
£		 plant/
machinery
expenditure £
Internal partitions 220 500 21.83 7.17 0 110 500
Plasterboard stud partition     2 750 m² @ £40 no no
Demountable partition, frame and hung panel system     800 m² @ £65 no yes
Glazed office fronts; excluding doors     650 m² @ £90 no yes
Internal doors 171 300 16.96 5.57 0 81 300
Flush doors; non fire-rated; solid core veneer-faced; hardwood frames; iron mongery; complete     180 @ £500 no no
Glazed doors; to demountable partitions; iron mongery; complete     65 @ £1 250 no yes
Wall finishes 183 500 18.17 5.97 0 0
Paint finishes; two-coat emulsion     2 800 m² @ £3 no no
Extra for specialist paint finish     1 200 m² @ £4 no no
Fabric wall finish; applied to plasterboard     400 m² @ £35 no no
Timber panels to meeting rooms etc     400 m² @ £350 no no
Ceramic tiling     250 m² @ £65 no no
Floor finishes 68 700 6.80 2.23 0 38 500
Vinyl sheet flooring; heavy duty; to support areas     720 m² @ £25 no no
Linoleum flooring to vending areas     250 m² @ £20 no no
Carpet to circulation and meeting rooms (average rate)     700 m² @ £55 no yes
Ceramic tiling     110 m² @ £65 no no
Ceiling finishes 83 300 8.25 2.71 0 30 000
Suspended ceiling; mineral fibre tiles; concealed grid; to support areas     720 m² @ £25 no no
Extra for moisture-resistant tiles to kitchen areas     100 m² @ £5 no no
Plasterboard feature ceilings to meeting rooms     290 m² @ £120 no no
Allowance for acoustic insulation in ceiling void between
cellular offices with demountable partitions		     Item @ £30 000 no yes
Furniture and fittings 300 000 29.70 9.76 0 300 000
Allowance for fixed furniture, counters, shelving, racking and signage to support areas     Item @ £85 000 no yes
Allowance for fixed furniture and fittings to meeting rooms     Item @ £10 000 no yes
Allowance for fixed furniture and fittings to dining rooms     Item @ £35 000 no yes
Allowance for fixed furniture and fittings to vending/copy points (12 number)     Item @ £150 000 no yes
Hand-held fire fighting equipment     Item @ £10 000 no yes
Allowance for directional signage     Item @ £10 000 no yes
Special equipment 100 000 9.90 3.25 0 100 000
Kitchen installation complete, included dedicated extract system     Item @ £100 000 no yes
Water and disposal installations 40 000 Ìý3.96 1.30 0 40 000
Water and drainage installation to on-floor vending, sick room etc     15 @ £1 000 no yes
Allowance for water and drainage to kitchen     Item @ £25 000 no yes
Mechanical installations 252 500 25.00 8.21 0 252 500
Allowance for modifying mechanical installations in office and support areas     10 100 m² @ £25 no yes
Electrical installations 319 200 31.60 10.38 0 198 000
Underfloor busbar small power distribution to office areas
and meeting rooms; including taking up existing floor boxes		     9 000 m² @ £22 no yes
Allowance for modifying lighting and other electrical installations in office and support areas     10 100 m² @ £12 no no
Protective installations 10 000 0.99 0.33 0 10 000
Additional sprinkler heads to suit cellular office layout     Item @ £10 000 no yes
Communications installations 816 000 80.79 26.54 0 816 000
Flood wiring to office areas     8 300m² @ £75 no yes
Allowance for taking up and refixing floor tiles in connection with data wiring     8 300 m² @ £10 no yes
Turnstile entry control with card operation     Item @ £60 000 no yes
Allowance for modifying fire alarms and other communications
systems in office and support areas		     10 100m² @ £5 no yes
Builder’s work in connection 46 000 4.55 1.49 0 42 000
BWIC with plant and machinery (allow 3%)     Item @ £42 000 no yes
BWIC with non-allowable services (allow 3%)     Item @ £4 000 no no
Preliminaries and contingencies 464 000 45.94 15.09 0 356 000
Testing and commissioning in connection with plant and machinery     Item @ £20 000 no yes
Contractor’s overheads, site establishment and site supervision          
In connection with plant and machinery (allow 12%)     Item @ £237 200 no yes
In connection with non-allowable works (allow 12%)     Item @ £75 800 no no
Contingency sum in connection with plant and machinery (allow 5%)     Item @ £98 800 no yes
Contingency sum in connection with non-allowable works (allow 5%)     Item @ £32 200 no no
Total construction cost
Tenant's fit-out only		 3 075 000 304.44 100.00 0 2 374 800
Location factors
All costs in this article are based on
projects in outer London and should be
adjusted by the following location
factors for projects in other areas.
Inner London 1.06
South-east 0.96
South-west 0.91
East Midlands 0.88
West Midlands 0.88
East Anglia 0.89
Yorkshire and Humberside 0.88
North-west 0.92
Northern 0.88
Scotland 0.89
Wales 0.88
Northern Ireland 0.76