Depreciation and Amortisation rate calculation

Sister123

Hi,

 

What are the standard rates for calculating depreciation/Amortisation on building fit-outs and other equipment?

 

Thank you.

Isaiah_C

Hi @Sister123,

 

Thanks for your question. There isn’t one standard rate for all building fit-outs or equipment. The rate depends on the asset’s useful life and the depreciation or amortisation method used. Building fit-outs and other equipment are generally tangible assets, so they’re usually depreciated rather than amortised. For tax purposes, building fit-outs may also fall under capital works rules, which can be written off over a longer period than other depreciating assets. You can check these guides for more information:

 

• Depreciation and accounting: a complete guide for small businesses
• What is amortisation and how does it work?

 

For the correct rate and tax treatment for your specific fit-out or equipment, we recommend checking with your accountant or registered tax adviser, as we can’t provide tax advice. 

 

Regards,

Sai