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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 |
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