Capital Allowances for Hospitality, a Competitive Edge

Pubs and restaurants are being squeezed from every direction right now.

Business rates revaluations, rising energy costs and relentless staffing pressures are hitting margins across the sector, even for well run operators.

But one opportunity is still consistently overlooked: Capital allowances on the building, fitout and refurbishments that keep these venues running.

Recent examples of work:

• Restaurant fit out – 68% of expenditure qualifying for plant and machinery allowances. Key areas of consideration include commercial kitchen equipment, extraction systems, bespoke joinery and specialist lighting
• Public House / Bar refurbishment – 72% of expenditure qualifying for plant and machinery allowances with a further 12% as repairs. This can include work linked to removing or installing plant.

For many operators, a specialist review can deliver meaningful tax relief at a time when cashflow matters more than ever.

With costs rising and profitability under pressure, capital allowances aren’t just a tax exercise, they’re a strategic measure to protect margin and reinvest in the business.

Please get in touch with one of our directors if you would like to discuss this further.