Capital Allowances

If you own commercial property and have not claimed Capital Allowances, there is likely to be an opportunity to undertake a Capital Allowances review which can significantly reduce your tax liability. Capital Allowances may be available on capital incurred directly on the construction, renovation or refurbishment of a property or historically on the purchase of a property. Each building will have its own unique tax profile which our specialists will be able to determine. Included below are guidelines as to the extent of qualifying expenditure that would be typical for each type of property.

Examples of the tax saving...

£10M

£10M of capital expenditure incurred.

£5M

£5M identified as qualifying expenditure for the purposes of
Capital Allowances.

19%

The rate of Corporation Tax.

£950K

The tax saving of the capital allowances identified.

Will this be available on my property?

Buildings and structures are deemed to be non-qualifying for tax purposes, however they often contain a significant amount of features embedded into the fabric and structure of the building, such as; water systems, lifts, bathrooms, kitchens, mechanical and electrical installations all of which can be qualifying plant & machinery. With the recent introduction of Structure and Buildings Allowances,
non-qualifying expenditure can, to a large extent, also be claimed under this new allowance.

The reliefs apply to a wide range of scenario’s but in essence almost all commercial properties can utilise capital allowances. Even if the property and capital expenditure was incurred a number of years earlier, or there is limited information to support a claim, this will not prohibit our experienced specialists undertaking a review to establish the validity of a claim.

Hi-tech manufacturing, research facilities, coldstorefacilities,
retail & office fit-outs.

Pubs, restaurants, leisure centres, luxury hotels, data centres, private medical facilities

Nursing homes,
owner-occupier offices, mid-range hotels, health centres.

Commercial offices, shopping centres,
budget hotels.

Industrial units,
retail warehouses,
car parks, student accomodation.