
If an office fit-out or office furniture is funded from your cashflow, only a limited percentage is usually allowable for tax purposes. Because of the 'intangible' elements, the Revenue only allows you to claim capital allowances against approximately 65% of the project. However, if you lease furniture or fit-out works, the repayments are 100% allowable against tax, unlike any other form of finance such as a bank loan.
This 100% allowance on payments makes leasing the most tax efficient method of refurbishing a building and can work out cheaper than using your capital!
In addition, leasing payments are fixed for a set period thus allowing businesses to budget for one easy monthly payment. Many of our clients are now looking to budget for a fixed price per square foot of office space - not only for the building, but also for everything within that space.
There is now no need to settle for a project dictated solely by a capital budget. By also making use of a revenue budget, organisations can achieve the solution they really want.
To view a leasing special in Facilities Management magazine in Adobe Acrobat format click here and it will open in a new window (right-click and choose "Save Target As..." to download).