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Capital Allowances

If you own commercial property and are a UK taxpayer, our specialists are likely to be able to reduce the amount of tax you pay.

What are capital allowances?

A capital allowance is the unit used by HMRC to measure depreciation (wear and tear) of an asset.

The current legislation governing the use of capital allowances is the Capital Allowances Act, 2001.

Commercial property owners are allowed to claim capital allowances on inherent plant & machinery within their commercial buildings as a statutory exemption.

The typical value of a capital allowances claim:

On average, a capital allowances claim undertaken by us results in you receiving a tax saving of over 6% of your portfolio’s purchase consideration.

The value of the tax saving is affected by the types and sizes of buildings being claimed upon as well as the effective tax rate of the legal owning entity.

To download our Commercial Property Tax Saving Information Guide, click here.

  • Capital allowances on investment property
  • Capital allowances on refurbishments
  • Capital expenditure projects
  • Enhanced capital allowances
  • Capital allowances on property purchases and disposals

Surely my accountant will have already dealt with my relevant capital allowances claims?

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 as when a building is purchased, there are no receipts passed on for the integral features. We work directly for property owner-occupiers and investors alongside their accountant to maximise their tax savings.

I bought my property several years ago. Can I still claim?

As long as you are still in ownership of the property, there are no issues claiming on older purchases. If you have bought or sold any commercial property in the last 10 years, contact us on 020 7725 9944 or email: enquiries@cpatax.co.uk.

How will capital allowances benefit me or my business?

Whether you are profitable or not, it is always advantageous to identify capital allowances on qualifying expenditure for the following reasons:

Capital allowances may result in significant tax rebates from HMRC.

If you are profitable then capital allowances can be offset against other income or profits possibly even across other companies in your group (if applicable).

If you are not profitable, in certain cases, it is possible to defer the reliefs until they are required.

Is this a tax scheme?

No. It is a statutory exemption, written in law under the Capital Allowance Act 2001 and is a legitimate form of tax relief for commercial property owners.

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