Capital Allowances on Buildings Explained

Often overlooked by most property owners, Capital Allowances deliver a tax benefit against qualifying plant and machinery that is used for the purposes of the trade.  The tax savings on these hidden integral features can be substantial.  Keep reading to learn more about Property Capital Allowances and how they help property owners.

What are Capital Allowances on Buildings?

Submitting a claim for capital allowances on buildings is possible for the immovable fixtures and fittings that reside within the property. The hidden integral features often remain hidden deep within the building and it takes an expert to identify all items that can be recovered, because no two properties are the same.

Before you purchase or dispose of a property, you should discuss property capital allowances with our team.  While most accountants will have a process for 'over the counter' capital allowances, we help identify items that often don't appear on the balance sheet.  We work in a complimentary way with accountants by visiting their client's property and performing a thorough assessment of what may be recovered.

Why Are So Many Items Missed?

  • Extensive and complex legislation applies to large amounts or property equipment and improvements. Not only are the items that can be claimed hard to identify, the allowable claimable rate changes frequently, so, you have to be certain the figures are correct - and this is where we come in.
  • Property purchases can include details of immovable items, however, the specific details of hidden integral features are often not provided or make little sense e.g. make of the kit not the number or cost. This means that most items that aren't easily identified often remain unclaimed.

Examples of Capital Allowances on Buildings

Lifts
Fitted Lifts
Security System
Security Systems
Secure Access
Secure Access
Heating System
Heating Systems

Capital Allowances on Property

If you own or manage a portfolio of commercial properties then you may be able to recover a significant benefit by way of a successful capital allowance claim. There are a lot of grey areas with regards to capital allowances, so, if you operate a commercial property being used for the purposes of the trade, then talk to one of our experts today.

Eligibility

To be able to claim capital allowances, you must meet the following criteria:

  • The commercial property has to be owned by a UK tax paying entity, regardless of whether that's a company, partnership or individual/sole trader.
  • The property has to be a commercial property

Qualifying Expenditure

Items recoverable are commonly referred to as plant and machinery or embedded fixtures and fittings being used for the purposes of the trade.

Items purchased for use in the trade are eligible but these will often be claimed as a matter of course by most good accountants. Our capital allowance service goes one step further, by carefully itemising all on site assets that may carry a hidden benefit, even if the items were purchased before you took control of them.

Qualifying Expenditure

With no comprehensive list of qualifying items available, it takes the expertise of a capital allowance specialist to safely assess, list and condense all embedded items residing at a site.  Here are just a few of the items that can hold a hidden benefit:

  • Lighting Systems
  • Heating Systems
  • Air Conditioning Units
  • Lifts

Qualifying Properties

  • Restaurants
  • Offices
  • Warehouses
  • Nursing Homes
  • Hospitals
  • Shopping Centres
  • Shopping Parks
  • Rental Properties

Contact Us

Our team of experts are happy to help answer any of your questions relating to capital allowances or your commercial property.

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