Tax & Accounting News

Get The Government to Pay for your Flat Renovation or Conversion

13/05/2009

A little-known rule allows property developers to claim 100% tax relief for converting a flat over retail premises.

Many older commercial properties were originally built with residential accommodation on the upper floors, such as a flat over a shop, or the landlord’s living quarters above a pub.

If these premises were:

• Built before 1980
• Are no more than four stories above ground level
• Upper floors should have been vacant or only used for storage in the year before construction work starts

The finished flat should have no more than four rooms and must be of a low value, so may not be suitable for properties in high value areas.

A typical guideline is if the flat could attract a notional rent of less than £350 per week for a two bedroom flat in central London.

If your conversion matches these criteria then you can claim back 100 per cent of the value of the works against tax, making conversion even more profitable.

 

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