Tax benefits for office fit-out projects

The Chancellor announced a new Super Deduction Tax Scheme in his 2021 budget. This offers a 130% tax allowance against qualifying capital purchases. A potential benefit if you’re considering an office fit-out or refurbishment project.

This is clearly great news for businesses looking to invest in their assets. It provides a well-needed boost in the commercial sector as we move out of Covid-19 restrictions.

How can it help with office fit-outs and furniture?

If a company has excess cash and is buying furniture or equipment, then it could be best to buy using cash. However, there is the argument that investing cash in depreciating assets isn’t its most cost-effective use. Cash may offer a greater return if invested in other business needs.

Tax benefits for office fit-outs

If a business doesn’t have the cash, they could benefit from a Lease Purchase agreement for qualifying assets. For example, furniture and AV would give them the 130% tax allowance.

Or another option for a business without the cash is a Lease Rental for the non-qualifying proportion of the fit-out. This gives them a 100% allowance on the monthly rentals.

We can help advise clients on the best way to finance their projects through our partner, Plus Finance Limited, which has been offering finance on fit-out projects for 20 years.

For more information, please contact Alex Ryan on 01494 464686 or email us at info@formws.co.uk.

Form Workplace Solutions has a highly experienced design team with a long track record of bringing innovative concepts to the office; and as a registered supplier with the Low Carbon Workspaces initiative, we can also ensure new innovations are delivered in the most cost effective way possible.