If you own or invest in office or industrial properties, you may be sitting on significant unclaimed tax relief. Capital Allowances are a powerful, government-backed way of reducing your taxable profits. Yet, many commercial property owners fail to claim the full tax relief available to them, leaving substantial sums of money on the table.
What Are Capital Allowances?
Capital Allowances allow businesses to deduct the cost of qualifying capital expenditures from their taxable income. For office and industrial properties, this often includes:
- Plant & Machinery – HVAC systems, electrical and lighting installations, lifts, security systems, and other essential infrastructure.
- Integral Features – Water systems, heating, ventilation, and air conditioning (HVAC).
- Furniture & Fittings – Desks, shelving, partitioning, and office equipment.
- Land Remediation Relief – Costs associated with cleaning up contaminated land or buildings.
Common Misconceptions About Capital Allowances
1. “I’ve Already Claimed Everything”
Many businesses assume their accountant has claimed all available allowances. However, without a specialist Capital Allowances review, substantial missed opportunities often remain. With only 20% of commercial property owners having correctly claimed Capital Allowances, its a risk-free exercise that should be explored.
2. “Only New Properties Qualify”
Even if you’ve owned a property for years, you may still be eligible to claim allowances on fixtures and integral features that were never previously identified.
3. “I Can Only Claim When I Buy the Property”
Claims can be made retrospectively, even on past expenditures, provided they have not been previously claimed.
Key Capital Allowance Opportunities in Office & Industrial Properties
1. Office Fit-Outs & Renovations
If you’ve upgraded your office space with new partitions, air conditioning, lighting, or security systems, these costs could be eligible for tax relief. The Annual Investment Allowance (AIA) allows businesses to deduct 100% of qualifying expenditure (up to £1 million per year).
2. Industrial Buildings & Warehouses
Industrial properties contain significant embedded capital allowances in electrical systems, plumbing, fire alarms, and specialist machinery—all of which may qualify for relief.
3. Second-Hand Purchases
When acquiring a commercial property, it’s crucial to check whether capital allowances have been claimed previously. A well-structured Section 198 election ensures you can claim what’s available while avoiding disputes with HMRC.
4. Land Remediation Relief
If you’ve invested in cleaning up contaminated land or asbestos removal in an industrial setting, you may be eligible for 150% relief on qualifying costs.
How to Maximise Your Capital Allowance Claims
Conduct a Professional Review – A Capital Allowances specialist can uncover unclaimed reliefs that general accountants may overlook.
Review Past Expenditures – Claims can often be made for historical property improvements and refurbishments.
Ensure Proper Documentation – Keeping detailed records of asset purchases, invoices, and property improvements will streamline the claim process, however our team of expert surveyors provide peace of mind that all qualifying items are included from your claim.
Work with HMA Tax – Capital Allowances legislation is complex, and maximising claims requires specialist knowledge to avoid missed opportunities, so work with the UK’s leading independent specialists.
If you own or invest in office and industrial properties, there’s a strong chance you could unlock thousand of pounds in unclaimed tax relief. Capital Allowances can significantly improve cash flow and reduce tax liabilities, but only when properly identified and claimed.
Contact HMA Tax today for a free consultation, or check to see if you quality, or discover how much you could reclaim. Let us help you maximise your allowances to reduce your tax liability.
