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Home / FAQs / I’ve always thought claiming capital allowances increases a capital gains tax bill when I come to sell?

Our FAQs

Our biggest problem…everyone thinks they’ve already done it!

We’ve put together a list of our most frequently asked questions but do contact us if there’s anything else that you can’t find below.

The most common misconception is the view that any savings achieved by claiming capital allowances will be cancelled out later by an increased chargeable gain (if the property is ever sold).

This is not true. Section 41 TCGA 1992 specifically provides that it is not necessary to deduct any capital allowances from the cost of an asset for capital gains purposes, so it is not possible for a capital allowance claim to create or increase a chargeable gain. capital allowance claims on Land & Building costs does not reduce the Balance Sheet value.

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