Capital allowances for industrial
Security shutters, lighting, fire systems, welfare facilities and process-related services qualify, and new builds open up full expensing and the Structures and Buildings Allowance.
Factory and warehouse owners rarely realise how much relief their buildings hold. Security shutters, lighting, fire alarms, kitchen and bathroom facilities and the power supply to machinery all count.
On acquisitions we typically identify around 15% of the original purchase price. On an £800,000 unit that is £120,000 of allowances and about £48,000 in tax relief for a higher-rate taxpayer. New construction, fit-out and refurbishment projects produce much higher percentages.
We work alongside your accountant, survey the site with minimum disruption and handle everything with HMRC.
What qualifies
Legislation that matters
The Court of Appeal held that most of a specialist nuclear facility was a building under s21 and s23, even though it was essential to the trade. Specialist does not mean plant: the claim has to identify the items that perform a function.
From 1 January 2026, new main-rate plant attracts a 40% first-year allowance, including assets bought for leasing and spend by partnerships and sole traders who cannot use full expensing.
New warehouses and factories earn 3% of construction cost a year for 33⅓ years. Separating the SBA shell from qualifying plant is where most of the value is won or lost.
Recent industrial claims
The UK’s leading capital allowance specialists
Embedded allowances need a property survey, a valuation and specialist tax knowledge. Most accountancy firms claim invoiced items such as furniture and computers, but don’t have the surveying resource to identify fixtures built into the fabric of a building.
Allowances are not deducted from the cost of the asset when calculating a gain (s41 TCGA 1992), so a claim cannot create or increase a chargeable gain. They can restrict a capital loss, and on a sale the s198 election decides what passes to the buyer, so plan it into the transaction.
Every claim is documented to stand up to scrutiny, and we support you throughout any HMRC enquiry. To date every report we have submitted has been approved.
No. If we can’t identify previously unclaimed allowances, there is no fee. Full fee terms are set out in our engagement letter.
Two minutes, no obligation, and no fee if we can’t identify previously unclaimed allowances.
