Embedded capital allowances relate to assets embedded in a commercial property and therefore help support the business. There is no definitive list of these assets, although, the Capital Allowances Act and legal precedents provide very good guidance on what may be successfully claimed.
Examples of these embedded capital allowances assets are heating systems, lighting systems, sanitary ware, kitchens, computer cabling and CCTV. The full cost of these assets, including design and installation, are claimable. Remember capital allowances are claimable in lieu of depreciation which is not an allowable expense against the profits of the business.
What Other Terms are Used Instead of Embedded Capital Allowances?
The Capital Allowances Act 2001 does not make reference to embedded capital allowances. Instead it makes reference to “Plant and Machinery Fixtures” and “Integral Features”. The term “Embedded Capital Allowances” has been adopted by many and is therefore in common usage. Especially amongst commercial property owners and leaseholders.
Therefore if you hear the terms “Plant and Machinery Fixtures” or “Integral Features” they are covered by the common usage term Embedded Capital Allowances. For more detailed information provided in other posts click “Plant and Machinery Fixtures” and “Integral Features”.
Who Can Make a Claim?
A list of those businesses which are entitled to claim capital allowances is given below:-
Trades
Ordinary Property Businesses (non residential)
Overseas Property Businesses (provided tax paid on profits in the UK).
Furnished Holiday Lets ( has to have been to be let for at least one night in or before the end of 24/25 tax year).
The above have to have an interest in the land on which the property sits but this can be either a freehold or leasehold interest or potentially a licence for exclusive use of the property. If you would like us to provide you with a capital allowances quotation please complete our “Free Capital Allowances Review Form” or if you have a general question about capital allowances please complete our “Contact Form”.
