Tax relief for shop fit out

O

OneMoreCupOf

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Hi,

I was looking at some shop spaces for lease with the idea of getting a unit fit out for a retail shop.

I have some estimates to do a complete shop fit out.

Say for example I get the shop fit out from an empty shell and it costs say €80,000. Can the full cost of the fit out be used as tax relief? I know assets such as furniture etc for the company can be claimed as tax relief over 8 years @ 12.5 per annum. As most of the fit out will deteriorate over time, I presume it can all be claimed for?

regards,
OneMoreCup
 
It if qualifies as plant, yes. Basically, the test applied in determining whether specific capital assets constitute plant is to decide if the asset is FUNCTIONAL to the operation of the particular type of business as distinct from merely representing the SETTING in which the business is carried on.
An important point to remember when looking at capital assets is that the accounting treatment adopted is in no way conclusive evidence that the asset constitutes ‘Plant’.

So shelving would be plant, while a roller door would not qualify.
 
Thanks Paddy.
I will be checking with an accountant at later stage, I'm trying to get a estimate of what could be claimed for first.

Would tiling, shop counter, toilet cubicle, signage, air cond/heating,lighting, CCTV etc be classified as 'Plant'

Regards,
OneMoreCup
 
Last edited:
Fitting out costs are generally not classed as "plant".

There is a lot of gobbledegook parlayed around the business accounting.

Much of this arises from the trials of manufacturing businesses and is transferred over.

You sound like your setting up a retail outlet, where almost nothing is "plant" in the classical sense.

If you need to get this level of accuracy in your terms you need to talk to a tax accountant.

You could also look to one of the free services like the Southside Partnership.



I am not an expert in this field and you may get better assistance from other groups specialising in Small and Medium Enterprises (SME's).

Either way the creative interpretation of expenses at this early stage may delude you as to the profitability of your enterprise.

Far better to get competent comment now rather than later. :)
 
If you do some digging on the Revenue's web-site you'll find alot of what you are looking for, e.g. Air Con, shop counter, etc should all be OK.

If you are talking about laying out €80k but haven't yet spoken to an accountant, then I strongly suggest that you do so and he'll/she'll also deal with this question.
 
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