Commercial Property Capital Allowances

 

Capital Allowances are a tax relief which allows you to claim back a proportion of the expenditure invested in your commercial property. Costs are deducted from your taxable profits, reducing the tax your business is required to pay.

However, unlike other forms of tax benefit, Capital Allowances aren’t restricted to a 12 month or two year timeframe, and instead can be retrospectively applied to expenditure from years before – meaning you could be entitled to a significant rebate of overpaid tax!

WHO CAN CLAIM?

All commercial property owners or occupiers who are UK taxpayers may be eligible to claim Capital Allowances.

Land or buildings used for residential purposes typically do not qualify for Capital Allowances.

 

WHAT QUALIFYS FOR CAPITAL ALLOWANCES?

The assets are required to be capital in nature, meaning they benefit the business over multiple years, rather than being consumed within the year of purchase.

You’ll generally be able to claim Capital Allowances on items such as air conditioning, electrical systems, heating, lighting and security systems – essentially everything that’s a fixed part of the building either in situ on purchase or installed as part of refurbishment or fit out projects.

• Fixtures and fittings like air conditioning systems, elevators, kitchens, bathrooms, security
• Integral features of buildings like electrical systems, heating
• Certain types of structures and buildings

MAKING A CLAIM

Most businesses claim basic Capital Allowances on standard trade equipment such as plant and machinery, but many miss out on valuable lesser known property reliefs available to them.

If you haven’t had a detailed assessment of your property and professional review of your historical expenditure, you may be missing the opportunity to substantially reduce your tax liability.

To explore your eligibility to claim and maximise value from your commercial property, book a free no-obligation consultation with our Tax experts to discuss further.

GET IN TOUCH

 

CASE STUDIES

HOTEL/LEISURE

We completed a review of a major refurbishment of a hotel. The refurbishment cost was approx. £1.5m and we identified almost £500K of allowances, generating tax savings of around £90K.

INDUSTRIAL

We completed a claim on a portfolio of industrial units across the UK. The value of the portfolio was £7.5m, our specialist team identified unclaimed Capital Allowances of just over £1m, generating tax savings of almost £250k.

OFFICE BUSINESS PARK 

We completed a review of an office business park in Bishop Stortford. The property had undergone a large refurbishment project to split the office in to a number of separate units. We identified unclaimed Capital Allowances in excess of £210k, generating tax savings of nearly £50,000.

TC PROPERTY ADVISORY SERVICES