Building fixture deadline announced

Office design news from Morgan Lovell

Published on 06-07-2011

The last day of August will see an end to the Inland Revenue's consultation on claiming allowances on fixtures in buildings.

This means that all owners of commercial properties, including landowners with commercial buildings in rural areas, have to review their allowances and take appropriate action, according accountants Saffery Champness.

A partner at Saffery Champness, Mike Harrison, said: "Currently, capital allowances on fixtures in a building - either when it is first purchased or being subject to an office refurbishment - can effectively be claimed some years down the line.

"This is because there is no requirement to claim all allowances every year. The current position has been particularly helpful to those who have purchased commercial buildings but have not fully assessed the extent of the fixtures in the building that would qualify for annual capital allowances until sometime after the purchase."

The Inland Revenue's consultation will look at whether owners should be required to claim their expenditures on fixtures within a short space of time after the purchase, or lose the capital allowances altogether.

Saffery Champness says those who have bought commercial buildings or brought them into use will have to decide whether it will be worthwhile to obtain a detailed report on fixtures which qualify for the allowance.