Can You Claim Security Fencing and Gates Under Capital Allowances?

What are capital allowances?

Capital allowances are a form of tax relief which allow your company, business or organisation to write off the cost of certain types of its assets against its taxable profits.

There are various different types of capital allowances. Each ‘type’ comes with its own set of rules, which you must follow, and are used to work out how much relief you can claim.

Capital allowances are available for certain assets, including cars and other vehicles, machinery or tools, but also for some building-related spending, qualifying spending on research and developments, and donations of used business assets to charity.

Organisations and companies liable for Corporation Tax, self-employed people, people working in partnerships and sole traders are all eligible to apply for capital allowances.

Is security fencing at business premises covered under capital allowances?

Security assets, such as security fencing, at business premises are covered by capital allowances. ‘Security assets’ are defined by HMRC as “an asset or service which improves personal security”. Assets at business premises that are applicable for capital allowances include:

• Security fencing
• Security gates
• Electric gates
• Shutters and doors

Is security fencing at personal property covered under business capital allowances?

Capital allowances can be granted for security fencing (and other security assets) at personal property for individuals or partnerships in two situations:

1. A person or partnership that is carrying out a trade or profession and has to spend money on a personal security asset as a result of a ‘special threat’. A special threat is “a threat to the individual’s personal physical security that arises wholly or mainly because of the trade etc.”
2. A person or partnership that carries out a property business, including a furnished holiday or overseas property lettings business

If a security asset, such as security fencing, has been used for another purpose as well as improving personal physical security, only a proportion of that asset is viable for capital allowances. That is, capital allowances apply only to the proportion of the security fence that is specifically for security purposes.

As with business premises, the same rules apply for other security assets at personal properties including:

• Security gates
• Electric gates
• Security shutters
• Security doors

For more information about capital allowances, visit the HMRC website.

Please contact SafeSite Facilities for any security products and services.