Capital Allowances

Capital Allowances

Capital Allowances allow businesses to reduce their tax bill by claiming relief on qualifying capital expenditure — essentially the ‘depreciation’ of certain business assets. This may include costs related to purchasing, constructing, refurbishing, or extending a property.

Any commercial property (excluding purely residential spaces, apart from shared or communal areas) may qualify for a capital allowances claim — whether held as a freehold or leasehold asset — and there are no fixed time limits for making a claim.

To benefit, a business must have incurred eligible capital expenditure and have a UK tax liability to offset. In most cases, building-related activities such as acquisitions, disposals, developments, refurbishments, fit-outs, and extensions can create entitlement to capital allowances — even if a previous owner has already claimed allowances in the past.

Are You Eligible?

You can quickly check your eligibility for Capital Allowances by answering a few simple questions:

• Are you liable to pay UK Corporation Tax or Income Tax?

• Is your property or asset located in the UK?

• Is the property commercial, or a communal area within a residential building?

• Do you hold the property or asset as an investment on capital account?

If you’ve answered “yes” to these questions, you may be entitled to claim valuable tax relief.