What is Capital Allowance?

Capital Allowances allow commercial property owners to claim qualifying items of capital expenditure as a tax deduction and are a valuable tax relief.  Property Capital Allowances can recover tax paid and reduce taxes for companies and individuals that have spent capital buying/improving commercial property.  A Capital Allowance is a taxable benefit against expenditure on Plant and Machinery for the purpose of the trade.

Money being saved

What are Plant and Machinery?

According to HMRC “There is no definition of ‘plant’ in the Act: but, in its ordinary sense, it includes whatever equipment is used by a businessman for carrying on his business.  This does not include stock-in-trade which is purchased or makes for a sale, but all goods and chattels, fixed or moveable, live or dead, which is kept for permanent employment in the business.”

Pile of coins growing in soil

What about the embedded fixtures and fittings of your commercial property?

Capital Allowances allow commercial property owners to claim qualifying items of capital expenditure as a tax deduction and are a valuable tax relief.

Property Capital Allowances can recover tax paid and reduce tax liabilities for companies and individuals that have spent capital buying/improving a commercial property.  To ensure the maximum level of tax savings can be claimed, we will survey the property to highlight the embedded items that are not visible within the paperwork.  As illustrated below.

If you or your clients have spent capital buying or improving a commercial property and have not had a survey to highlight the embedded fixtures and fittings, then you could be eligible to claim.

We could help you to secure tax savings from your commercial property and reduce your taxable income!

Layers of a commercial property

Important:

We find the most efficient way of assessing whether tax savings can be achieved is through a conversation with accountants.

We are aware of the accounting routines for assessing Capital Allowances and stress that we’re not questioning anyone’s ability, but by applying additional disciplines, our aim is to increase the level of Capital Allowances claimed and add value to their work.  A survey completed on the property to identify items that are not visible within the paperwork and sit within Land & Buildings on the Balance Sheet (not Fixtures & Fittings).

Don’t miss the hidden value in your business! Contact us today to find out if you can claim.

Latest News

  • X-ray of the insides of a commercial property
    14 May 2024

    Capital Allowances Defined: What are they and what do they achieve?

    Capital allowances can be a huge opportunity in the world of taxation and commercial property investment. As they can hold large financial opportunities. Yet, for many, they are misunderstood and underestimated. At CARS, as well as providing an excellent level of service, we want to support and educate....
  • Westminster Hall
    2 May 2024

    Taxation of the Furnished Holiday Let (FHL) Regime Debate

    On Wednesday 1 May 2024, there was a debate that took place at Westminster Hall. This discussion is based on the topic of the taxation of furnished holiday lets. Specifically on the abolishment of the Furnished Holiday Regime, which was announced in the Spring Budget 2024. CARS followed this discussion...

Contact Us

Our expert team are here to help answer any of your capital allowances questions or enquires you have about your commercial property.

    Sign up to our Newsletter

    Read Our Privacy Policy