Skip to main content

What are Capital Allowances

COMMERCIAL PROPERTY TAX RELIEF

Capital Allowance Act 2001

The Capital Allowances Act 2001 is an Act of the Parliament of the United Kingdom that governs how capital allowances are deducted from income taxable under the Income Tax Act 2007 and the Corporation Tax Act 2009.

Capital Allowances can be claimed for certain qualifying items in a commercial property, that were either installed by the owner or inherited by the owner when the property was purchased.

The items can include, lifts, heating systems, plumbing, air conditioning, three phase electric, flooring, suspended ceilings, doors, bathrooms, toilets and kitchens. Basically, anything that would remain in in the building if it were tipped upside down.

The relief can be as much as 40% of the cost of a property and higher for alterations, extensions and refurbishment and, if you bought or undertook that expenditure in the last two years may well be all immediately available.

OUR METHODOLOGY

Award Winning Service

Our aim is to identify, value and claim Capital Allowances through the use of our specialist team to generate tax relief for your property. Thanks to the Capital Allowances Act 2001 property owners can claim for items that were embedded within the property at the time of purchase.

Initial Review

We will review the property details to ensure that it qualifies for a claim and provide an estimation on how much tax relief is available to be claimed.

Property Survey

We will then arrange for a member of our Surveying team to visit the property. Our Surveyors have a great deal of experience in identifying Embedded Capital Allowance items within commercial properties.

Survey Review Form

As standard operating procedure, you’ll have the opportunity to review our survey findings which will provide a full registry of embedded items that are eligible for your claim.

Tax Specialists

Our Chartered Tax Specialists will prepare a detailed report for approval and we will help ensure its submission to HMRC is done correctly.

HMRC Submission

With our 100% approval rate on reports submitted to HMRC, have the added confidence of knowing your Capital Allowance claim has been completed by the UK’s leading experts.

HMRC Refund

Once the Report has been submitted to HMRC, it typically takes 3 to 4 weeks for review and approval. 85% of our clients receive an initial tax refund directly from HMRC.

START YOUR CLAIM

DO I QUALIFY?

1

Do you own a UK Commercial property?

A Capital Allowance claim can only be completed on a commercial property. They can be completed on almost every type of commercial property, as long as a claim has not been previously made.
2

Are you eligible to pay tax in the UK?

The owner of the property or properties in question must be paying tax in the UK.
3

Is your property held in a pension fund?

Properties held within pensions funds are not eligible for Capital Allowance claims. However, if you are seeking to purchase from a Pension Fund then please contact HMA Tax.