Could you be accessing valuable tax reliefs for office refurbishments?
Andy Noton, 6 May 2026
Andy Noton, 6 May 2026
Upgrading your office or improving a commercial space can be a worthwhile investment.
With the right tax treatment, it can also be more cost-effective than many expect.
Depending on the extent of the refurbishment you plan for your office space, the average cost is around £30 to £100+ per square foot.
Capital allowances offer a way to recover part of that spend through reduced future tax bills.
When reviewing refurbishment costs, the first step is to separate repairs from capital spend.
Repairs, such as fixing existing features, are usually deducted as day-to-day business expenses.
Larger improvements or fit-outs are treated as capital and recorded as assets in the accounts.
Although capital costs do not reduce profit straight away, many elements qualify for Capital Allowances.
This allows businesses to claim tax relief against those costs over time or, in some cases, immediately.
Qualifying items often include electrical systems, lighting, heating and air conditioning, plumbing and fitted features within the building.
Specialist installations can also fall within scope. Even where works form part of a wider contract, certain elements may still be eligible, which is why a detailed breakdown of costs is important.
The Annual Investment Allowance currently gives businesses the option to claim up to £1 million of qualifying expenditure in full in the year it is incurred. Some assets may also qualify for first-year reliefs.
If these are not claimed at the right time, the cost is instead relieved gradually through Writing Down Allowances.
It is not unusual for parts of a project to be missed out when applying for tax relief, especially where records are incomplete.
Items often overlooked include strip-out costs, professional fees, cabling, security systems and industry-specific installations.
There is also a common assumption that capitalised costs do not qualify, which is not always the case.
Reviewing completed projects can still uncover missed claims and lead to further tax savings.
Claims are generally split between different pools, depending on the type of asset.
Getting this allocation right is key to ensuring the claim stands up if questioned.
Our advisers can identify qualifying assets that may not be obvious, produce detailed capital allowance reports, submit accurate claims and assist with any HMRC queries.
HMRC reviews capital allowance claims closely, and incorrect classifications or insufficient supporting evidence can result in claims being rejected or penalties being applied.
If you are planning a refurbishment or want to revisit previous projects, we can help you ensure you are not missing out on valuable tax relief. Get in touch with our Property Partner, Andy Noton (andrewnoton@lubbockfine.co.uk), to find out more.
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