revenue-expenditure
 

Revenue Expenditure

Where expenditure is incurred on the acquisition, development or refurbishment (including alterations and improvements) of a property it is treated as capital expenditure, and as such the only tax deductions allowable will be capital allowances on Plant and Machinery and on qualifying buildings.

Refurbishing buildings also often includes certain works of repairs and maintenance, which can be treated as revenue in nature, and as such could be fully tax deductible in the year of expenditure.

The distinction between revenue expenditure and capital expenditure can be highly problematic and has been the subject of many tax cases. Consideration should also be given to the ‘Integral Features’ replacement provisions of the Capital Allowances Act, which may capitalize any expenditure incurred on the replacement of an Integral Feature within a building.

PJB are experienced in this complex area and are able to assist with the maximisation of the tax benefits available by ascertaining those works that can be allocated as a revenue expense, potentially giving rise to 100% allowances in the year of expenditure.

For further guidance on the distinctions between capital and revenue and information on the treatment of revenue expenditure, please contact us.

 
 
 

The information contained in our website is believed to be correct, but there may be errors or omissions for which PJB cannot be responsible. It is therefore essential to take advice on specific issues.

 

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Purchase Price

This is the original or anticipated purchase price or development cost of your property.

Do not enter the current value here.

Building Type

Please provide the type of building you are looking to claim allowances on.

Note: You will be able to add further information about the type of building in the next step.

Your options here are;

  • Office.
  • Retail: Including high street, shopping centres and retail warehouses.
  • Mixed Use.
  • Industrial: Including warehouses and distribution centres.
  • Other: Leisure, hotels, casinos etc.
Building Category

Please select the description that best suits your property.

Other Information

Please provide any additional information about your property that you may consider appropriate.

Floor Area

Please enter the total floor area of the property.
You can provide either square footage or metres, but only use figures here.
The floor area you specify can either be gross or net internal space.

Floor Area Units

Please select the type of area e.g. Metres or Feet
and if the measurement has been taken as net or gross internal space.

Date of Purchase

Please enter the approximate month and year of purchase, or
if you have developed the property, please provide the
approximate date of completion.

Location Of Property

Where is the property located? Please provide town/city, and country.