Embedded Capital Allowances Explained

Capital allowances are a valuable form of tax relief available to anyone who incurs expenditure buying or building a commercial property. This is because accounting depreciation is not an allowable expense on your tax return. Whilst most ‘everyday’ purchases (such as Computers, Carpets, Desks etc) would usually have been claimed for, the more complex and significant items are normally avoided by Accountants because they don’t have the information to deal with them.

You may be interested to know that if you own your hotel, you have the potential to claim a tax refund or rebate on your property. We help you do this by identifying and claiming for Embedded Capital Allowances. These are items considered part of the commercial building that are rarely claimed by your Accountant.

We are proud to work with an ever growing number of Hotels and other commercial property owners to help them claim the refunds they are entitled to. It is your statutory right to claim these allowances, not a privilege.

It is very unlikely that your Accountant will have done an Embedded Capital Allowances claim for you due to the specialist nature of the work involved – they will need not only a very detailed understanding of the HMRC guidelines and manuals, but also a team of Surveyors and Solicitors.

We work closely with your Accountant to prepare the report and ensure that the figures provide the best possible benefit for you. Find out how you could benefit from an ECA review by taking 5 minutes to speak to one of our expert team.

I can, without hesitation, recommend the services of Headley Meredith Associates. They have provided me with a first class service and I have found them to be extremely thorough, informative and proactive throughout.

Carl HallFinancial Accounting Services Limited

The Claim Process


Here we identify the property details and start our enquiries with you to ensure that it qualifies for a claim. If you can ensure that your client responds to our queries quickly then this would greatly speed up the process. Our requests are never demanding, but relate to information only they are likely to hold. We will be looking at the type of property, when it was purchased and your clients’ tax rate.


We will then arrange for a member of our team who will be a qualified Chartered Surveyor to survey your clients’ property. Our surveyors have a great deal of experience in identifying and submitting Embedded Capital Allowance claims within commercial properties, and we can assure you that our surveyors will assess the property in a manner of upmost professionalism.


Once our surveyor has completed their report our tax specialist will assess and quantify the level of allowances your clients’ property will qualify for. The specialist will prepare a detailed report for approval by yourself and additionally in a format acceptable to HM Revenue & Customs.


We will work with you to help prepare your clients’ tax return to ensure the correct information is submitted. This then results in a refund of overpaid tax. This return also provides a template for future claims and tax returns.

Download our Brochure