Tax Allowance for relocatable partitioning to change in 2012

16th January 2012

According to recent reports the Annual Investment Allowance which currently offers businesses 100 per cent tax relief on the first £100,000 of qualifying expenditure, including relocatable partitioning, will be changed in April to just £25,000.

Tax relief for relocatable partitioning has been allowable since 1958. From April 6 2010 the terms were updated with the new Annual Investment Allowance (AIA) providing 100% relief on the first £100,000 of qualifying expenditure and then 20% above. Prime Chartered Accountants for the Association of Interior Specialists (AIS) cited partitioning that was intended to be movable qualifies as plant and machinery, and is therefore eligible for this allowance, and not seen as part of the building where no tax relief is available.

Malcolm Stamper at SAS International commented: “In light of this news we would urge businesses to consider refurbishment sooner rather than later to benefit from the current terms.”

Ensuring that new premises are flexible enough to allow for changing business requirements is a core consideration in today’s commercial environment.

Relocatable partitioning is ideal to help create private meeting rooms, a reception area or maximise usable space to incorporate a new or separate department into an existing floor. SAS International has a number of relocatable and removable solutions, such as System 8000 and the innovative C-Joint, which provides options to create both aesthetic and flexible interiors.

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