FAQs for Capital Allowances Claims

When selecting a capital allowances consultancy, ensure they have qualified and experienced staff. A transparent and comprehensive process. Strong HMRC credibility. Excellent post-claim support, and a tailored approach using the latest technology. This will help you maximise your capital allowances claims while minimising any risks. Please see our blog for a more comprehensive detailed assesment

Capital allowances provide tax relief for the depreciation of capital assets, principally plant & machinery, which includes most fixtures in a building used by a business, They take the place of commercial depreciation which is not deductible for tax purposes. The allowances are calculated as a percentage of capital expenditure incurred and are deducted from the taxable profits of the business.

You or your company may be entitled to a rebate of tax paid in your last one or two complete financial years. You will also be able to reduce your tax liability in the current and subsequent financial years. If you do not investigate the opportunity to claim capital allowances more of your profits will go to the HMRC instead of back into your pocket or your business.

No this is not a tax loophole. The Capital Allowances Act 2001 (CAA2001) is the governing legislation which is updated on an annual basis through annual changes via the Finance Act. The Government wants to provide tax breaks for those investing in Commercial Property as it is seen as one of the levers for increasing the overall economic growth in the country.

#We do not charge a fee unless we are sure we can make a worthwhile capital allowances claim on your behalf.  Our initial free, no obligation, High Level Review will give a good indication of your estimated outcome of undertaking a claim for capital allowances and provides the basis of our fees. We do not invoice you until the capital allowances claim is completed.

While your accountant deals with stand alone purchases such as furniture It is unlikely they will be able to fully exploit the capital allowances on property. This is because they lack the necessary combination of surveying and specialist taxation knowledge. For this reason,  accountants may be unaware of the full extent of what may be claimed and how to value it. More and more accountancy firms / tax advisers have realised the added value in outsourcing this area to a specialist capital allowance company such as ourselves.

No although this is a commonly held misconception. We can provide a copy of the relevant legislation if requested.

Nearly all commercial property which is owned by an individual or company, will potentially qualify for capital allowances provided it is not held in a pension fund or owned by a charity. Commercial property also includes furnished holiday lets (FHL’s) which meet the Government’s qualifying criteria. Although for FHL’s the last possible year for claiming allowances is the 24/25 tax year. Tax returns for this year remain open for amendment until 31st January 2027.

We can provide a High Level Review of the potential outcome of undertaking the work. This takes account of your property portfolio and your tax position. This is an offer for you to consider and puts you under no obligation whatsoever. If you accept the offer, and it is subsequently found, for whatever reason, that a claim cannot be made on your behalf then we will not charge you. To receive a Free Estimate complete the form here

All our claims are constructed according to HMRC’s and the Valuations Agency Office’ guidelines.  We are experts at presenting the information in a way that is acceptable to HMRC. Capital allowances are an entitlement designed to encourage companies and individuals to invest in property and other long term assets. HMRC randomly chooses to investigate a small number of claims for accuracy, and if this were to happen we would deal with any negotiations with HMRC on your behalf.

In theory,  you can go back to the date when you purchased or redeveloped a property. Although the assets have to have been in use in the finacial year they are being claimed.

Claims have been prepared on portfolios going back to the 1970′s.  Any allowances identified have to then be brought forward into your first open tax year. Generally this is the one before your current tax year.

There may be restrictions on claiming capital allowances for properties purchased since April 2014. It is now in the buyer’s or seller’s interests to consult with us as early in the buying process as possible and definitely before completion. If not the ability to claim allowances maybe lost for good.

Yes you can claim capital allowances where you have fitted out a rented or leased property To date we have dealt with claims where the fit out costs have ranged from circa £100,000 at the lower end to circa £11,250,000 at the higher end.

Yes. Please see our Blog for full details. Remember the last tax year to do this is the 24/25 tax year although the last date for the amendment of this tax return is the 31st January 2027.

From April 2012 HMRC confirmed that capital allowances may be claimed on Solar Panels and other electricity generating equipment. The costs are to be classed as “Special Rates” expenditure although the Annual Investment Allowance, where available, will apply.

Yes air conditioning is claimable under Integral Features legislation introduced ino the Capital Allowances Act in April 2008. It may be claimed using the Annual Investment Allowance (AIA) in the year the expenditure is incurred or by Writing Down Allowances (WDA) in the “Special Rates Pool”.