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IMH Advisory LLP advises several restaurant businesses, both individual sites and chains.

Depending on the number of sites, a capital allowances sampling approach may be possible for typical fit outs / refurbishments.  A sample of sites can be reviewed, and the weighted average result applied to the remaining locations. 

For one-off sites, a more detailed approach can be completed, analysing the main contract costs, direct orders, fees and considering any capital contributions received. 

The overall level of Plant and Machinery Allowances (PMA) is typically between 60% and 85% of the total expenditure.

When considering the capital allowances treatment for this type of business, attention should be given to specialist finishes, such as bespoke wall panels, as well as sound insulation required for the trade.  This is particularly relevant where the site is adjacent residential property, where noise transfer should be mitigated.​

Where applicable, we also identify any asbestos removal.  This qualifies for Land Remediation Relief (LRR), which provides a 150% tax deduction for Qualifying Land Remediation Expenditure (QLRE). 

Going forwards, the Structures and Buildings Allowance (SBA), will also apply to expenditure that previously obtained no tax relief.  This includes non-movable walls, doors, stairs and non-decorative finishes.

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