Capital Allowance

In your commercial Property, depreciation is charged on the building premises, however this is not a tax credit. Capital Allowance Tax relief allows you to claim Tax on Plant & Machinery within your commercial Property.

 

To claim for Capital Allowance tax relief, you will require a lot more detail than accountants will provide you with. HMRC will need to know details such as, How much the building cost to build, the measurements of the property, have a detailed Compliant report, has there been any contamination removal incidents, was there any professional fees, was there any contractor costs, and HMRC will need to know what items are within the property (Fixed Asset Register).

As you can see it is more than just writing a list of what items are in your property, and having a specialist onboard will help you with claiming Capital Allowance. Bespoke Partnerships (UK) Ltd will assist you through the process of claiming Capital Allowance, we will help you identify qualifying items and process costs that you accountant could miss out.

It is estimated that around 70% of commercial properties in the UK have not claimed capital allowance, and the most likely answer is that they simply do not know anything about it. Capital Allowance tax relief is a complicated accounting procedure, which most accountants themselves do not like doing as it is not just a straightforward procedure there is a lot to it.

Invested

Success Rate

Companies Assisted

Years Of Experience

A commercial property owner can claim capital allowance if they have:

Purchased a property
Constructed a property
Improved or renovated property
Repaired the building
Installed fixtures & Fittings
Remediated qualifying contamination

Capital Allowance tax relief is an additional allowance against all the embedded items within your commercial property. Qualifying Items include:

Heating systems
Lighting
Communication systems
Security systems
Hot & Cold water
Some Fixtures & Fittings

Items that do not qualify include:

Walls
Drainage
Roofs
Floors
Foundations

You could have purchased a building or have had works completed 5, 10 year ago, it does not matter you can still claim capital allowance. And there are several types of properties that capital allowance applies to:

Offices
Retail Shops
Hotels and Restaurants
Care Homes
Hospitals & Doctors Surgeries
Leisure Centres

If you have had to clear any contaminated sites you can claim an allowance called “Land Remediation Relief”. This was introduced in 2001 by the government as an incentive for clearing contaminated sites, removing cost barriers and rewarding good behaviour. In order to qualify for Land Remediation Relief, the land/building must be acquired for trading purposes or a property letting business, and the land must have been in a contaminated state when it was purchased.

Qualifying works can include:

Removal of asbestos
Treatment of Japanese Knotweed
Gas (e.g. methane, radon) membranes and ventilation systems
Removal of Fuel storage tanks
Groundwater and Gas Monitoring systems

Remedying or mitigating the effect of “substances” that cause “harm or significant injury of damage” (or the possibility of such) to:

Living organisms
Property
Ecological systems
Watercourses