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Restaurant – allowances of £100,000

The project involved the fitting out of premises for use as a restaurant. 

Typical claimable items include: Heating pumps qualifying for 100% Enhanced Capital Allowances (web address), kitchen ventilation systems, bar fronts and back fittings, fixed seating.

 Expenditure incurred by the owner occupier was £200,000 for which there was no detailed breakdown.  Stuart Rivers Associates’ analysis produced £100,000 of Capital Allowances.

This produces an overall tax saving for a 45% taxpayer of £45,000 for the owners with a first year saving of £5,400 excluding the impact of the Annual Investment Allowances (AIA). If the owner was able to benefit from the full value of the current AIA (£200k) then the first year tax saving would increase to £45,000.