Capital allowances for retail
Lighting, heating and ventilation, counters, security shutters, partitions and stair fittings. We typically find 20% of the purchase price.
Retail landlords and owner-occupiers often hold substantial unclaimed relief in fire alarm systems, security shutters, lighting, toilets and counters. A recent Manchester retail strip bought for £1.9m produced £380,000 of unclaimed allowances.
We typically find about 20% of the purchase price. On a £450,000 unit that is £90,000 of allowances and around £36,000 in tax relief for a higher-rate taxpayer. Shop fits and refurbishments usually qualify at a much higher rate.
Our specialists typically take about six weeks from first meeting to relief, and there is no fee if we can’t identify previously unclaimed allowances.
What qualifies
Legislation that matters
The House of Lords looked at a department store’s electrical installation part by part rather than as one system. The same approach, now reinforced by the integral features rules, drives a retail survey.
Shopfronts, floors and wall finishes were held to be part of the premises, while items with a function in the trade were plant. Knowing which side of that line an item sits is the job.
On a portfolio or parade purchase, the CPSE replies and s198 elections decide whether allowances pass to you. Blank, nil or £1 entries usually mean value has been lost.
Recent retail 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.
