Running a restaurant or bar is more than just serving great food and drinks, it’s about managing costs smartly, too. Tax saving allowances can help lower your tax bill and boost cash flow, but many hospitality business owners aren’t aware of what they can claim. Let’s break it down, so you can make sure you’re not missing out on valuable savings.

Kitchens, Interiors & Outdoor Seating: What is Eligible? 

1. Kitchen & Catering Equipment: Claim Back on Your Essentials

Your kitchen is the heart of your restaurant, and the good news is that a lot of your equipment can qualify for tax relief. Including: 

• Extractor fans
• Heating and electrical units
• Countertops or cabinetry, ovens and fridges may also be eligible.

These assets fall under capital allowances, meaning you can offset their cost against your taxable profits. Even smaller items may be included, so don’t overlook the little things that keep your business running smoothly. As part of our service we would review each item meticulously, checking eligibility and ensuring that your claim can be maximised for tax efficiency. 

If you’ve invested in energy efficient appliances, such as LED lighting, smart heating controls, or insulation, you might also be eligible for enhanced allowances. These allow you to claim 100% tax relief in the first year. That’s extra cash staying legally and compliantly in your business instead of going to the taxman.

2. Furnishings & Décor: Create an Inviting Space, Tax-Efficiently

The way your restaurant or bar looks plays a big role in attracting customers, and thankfully, many of your fixtures and fittings may qualify for tax saving allowances.  Whether it’s new seating, reception areas, booths, bar counters, refurbished walls or even decorative lighting, these assets depreciate over time, meaning they are eligible for tax relief.

You may also be able to claim on new flooring, soundproofing, and even air conditioning units. Our specialist consultants can help identify hidden savings that your accountant might have missed. Each expense could contribute to your savings.

By planning your interior upgrades carefully, you can significantly lower your tax bill.

3. Outdoor Spaces & Signage: Don’t Miss These Hidden Savings

If your restaurant or bar has an outdoor dining area, you could claim tax relief on elements such as decking, heating lamps, and awnings. Even signage, whether it’s a neon logo above your entrance or a traditional wooden board may qualify for tax relief under certain capital allowances.

Structural improvements, such as new walls or extensions, typically don’t qualify, but fittings like air conditioning units, fire alarms, and security systems often do. 

With the rise in alfresco dining, many businesses are investing in outdoor spaces. If you’ve done the same, now’s the time to see if you can claim back a portion of that investment.

Think your accountant is already doing this for you? You will be surprised…

• There is a very high possibility that your accountant will have only submitted claims for expenditure on the most obvious lower value items such as carpets, curtains, fire extinguishers etc.
• Specialist legal, surveying and accounting expertise are needed to be able to successfully make a capital allowances claim. Including a survey report, which an accountant cannot do. 
• However, we work directly alongside your accountant to maximise your tax savings, and include our specialist report. 
• Our website also answers FAQ’s that you may have about the process. 
• Our Blog, Capital Allowances Explained provides an indepth explanation of the tax saving. 
• If you want additional further reading, the GOV.UK website also details how these claims work. 

When you own a commercial property, you deserve every advantage. Outdoor seating, kitchens, and interiors are key areas. They may qualify for tax saving allowances if you spend wisely. 

Timing Your Refurbishment for Maximum Tax Benefits

Refurbishments can be costly, so why not time them strategically to maximise relief? The UK government offers different tax saving allowances, and when you complete your refurbishment can impact how much you can claim.

For example, the Annual Investment Allowance (AIA) allows businesses to deduct up to £1 million of qualifying expenditure each year. Planning your refurbishment to fall within the right financial year could mean writing off a large portion of your costs immediately rather than spreading deductions over several years.

If you plan multiple refurbishments, consider spreading them across tax years to make the most of available allowances. Proper planning ensures you claim the highest relief possible without exceeding annual limits.

Keeping Records: The Key to Unlocking Tax Savings

Claiming tax saving allowances on refurbishments isn’t automatic, you need detailed records to prove eligibility. Keeping invoices, receipts, and breakdowns of costs is crucial to ensuring a smooth claim process.

When working with contractors, request an itemised invoice that separates qualifying assets from general construction costs. This makes it easier to claim allowances without disputes from HMRC. If you’ve installed new kitchen fittings, air conditioning, or IT infrastructure, having a clear breakdown ensures you don’t miss out on tax relief.

It’s also a good idea to keep a record of when each upgrade was installed. Some allowances, such as the Super Deduction (which applies to certain plant and machinery investments), have deadlines. Ensuring your refurbishment is completed within these timeframes could mean bigger savings.

Consult our Expert: A Small Step for Big Savings

Calculating tax saving allowances can be complex, and we even provide training to accountants, but working with a specialist can make all the difference. Many property owners miss out on potential savings simply because they don’t know what qualifies.

Tax specialists can review your refurbishment plans, help identify claimable expenses, and ensure you maximise your deductions. They stay updated on tax regulations and can advise you on structuring your investments to benefit from the highest reliefs available.

Think of it as a partnership, while you focus on improving your commercial property, a specialist can focus on saving you money. That way, your refurbishment not only enhances your business but also reduces your tax liability.

If you’re considering a refurbishment, now is the time to explore your tax-saving options, because a well planned upgrade doesn’t just enhance your business, it boosts your bottom line, too. 

Key Moments to Call in a Specialist Tax Advisor

While it’s always a good idea to keep tax efficiency in mind, certain moments in your business journey make seeking expert help essential. Here are some key times when a tax specialist can save you money:

• Before a Major Refurbishment: If you’re planning to revamp your interiors, upgrade kitchen equipment, or improve customer facilities, a tax specialist can help you structure your spending to maximise relief.
• When Expanding Your Business: Opening a second location? Buying new premises? A specialist advisor can guide you through tax-efficient property purchases and renovations.
• If You’re Unsure About Past Claims: If you’ve been running your hospitality business for years but never explored tax saving allowances, a specialist can review past expenditures and help you make retrospective claims.
• When Facing a Tax Investigation: HMRC audits can be stressful, but a tax expert ensures you have everything in order, reducing the risk of unexpected liabilities. 

How a Specialist Tax Advisor Can Save You Money

Many hospitality owners assume that hiring a tax advisor is an unnecessary expense. But in reality, our expertise can lead to significant savings, often far outweighing the fees. Here’s how we can help:

• Understanding the Complexity of HospitalityTax Relief: Tax rules for the hospitality industry are more complex than most business owners realise. From capital allowances on kitchen equipment to tax relief on refurbishments, there are numerous opportunities to lower your tax bill. The problem? They aren’t always obvious. For example, if you’ve recently renovated your restaurant or upgraded outdoor seating, you could claim tax relief on certain costs. However, knowing what qualifies, and how to claim it correctly can be tricky. Specialist tax advisors understand the ins and outs of tax saving allowances and can help ensure you don’t miss out on potential savings.
• Identifying Hidden Tax Relief: Many business owners don’t realise that items like security systems, air conditioning, and even certain décor upgrades may qualify for tax relief. A tax specialist ensures every allowable and eligible item is claimed.
• Ensuring Correct Claims: Claiming tax relief incorrectly can lead to HMRC disputes. A specialist advisor ensures your claims are accurate, well-documented, and compliant. When we submit a Capital Allowances claim, we stay with you until you achieve a result. If for some reason an enquiry is raised by HMRC, you needn’t worry as we will be on hand throughout the process. 
• Maximising Capital Allowances: If you’ve invested in high-value assets like commercial kitchen appliances, furniture, or even IT systems, a specialist can structure your claims for the best possible return.
• Providing Ongoing Tax Planning: A good tax advisor doesn’t just look at past expenses, they help you plan for future savings, ensuring you remain tax-efficient as your business grows.

Finding the Right Tax Advisor for Your Business

Not all tax advisors are created equal, and hospitality businesses have unique needs. When choosing a specialist, look for:
✔ A track record of securing tax savings. Ask for case studies or examples of previous claims they’ve successfully handled. We have plenty of case studies and testimonials on our website.
✔ Clear and transparent fees. A good advisor should outline their fees upfront and explain how their services will benefit you financially. Our fees are competitive and easily structured, only taking a fee after you have secured a tax saving. 

By partnering with our specialists, you can turn tax savings into a powerful financial tool, allowing you to reinvest in your business, expand operations, or simply boost your bottom line.

Get in touch

You can submit an enquiry or schedule a free consultation directly with our tax specialists today: