Capital Allowances helps you maximise your tax relief on commercial property assets

Definition

What are are Capital Allowances?

Capital Allowances recognise expenditure incurred in the purchase of commercial properties and other assets as a tax allowable expense (unlike ‘depreciation’), reducing taxable profits and the associated tax liability; furthermore, claiming Capital Allowances do not increase your future capital gains tax liability if the property is subsequently sold. 

The majority of individuals and companies entitled to claim Capital Allowances on commercial property expenditure have not claimed their full entitlement and have therefore failed to maximise their tax relief.

Innovation Tax have helped secure millions of £’s of tax relief via Capital Allowance claims for our clients and our specialist expertise and knowledge of the Capital Allowance Act 2001 (CAA2001) ensures our clients benefit from the best advise possible.

Qualification

Capital Allowances
Qualifying Expenditures

The breadth and scope of Capital Allowances is varied and, as such, many businesses and advisors fail to claim the maximum benefit available. Qualifying expenditure can be incurred through various project types, some of which are outlined below.

Acquisition of Commercial Property
Refurbishment / Fit Out
Furnished Holiday Lettings
New Builds
Extensions

Capital Allowances
by the numbers

Our highly skilled and experienced team of Chartered RICS Surveyors, Technical and Taxation Professionals work with companies to identify all qualifying activities and associated expenditure.

Annual Investment Allowance (AIA)
£ 0
General Pool (Plant & Machinery) Rate
0 %
Special Rates Pool
0 %

Example property types & claimable items

Property Types
Claim Items
Capital Allowance Experience
0 yrs
Average Claim Amount
£ 0
Av. Claim Processing Time
-6 weeks

Our process to help you maximise your Capital Allowances claim

01.

Identify qualifying expenditure and property assets

02.

Assess eligibility under UK Capital Allowances rules and HMRC guidance

03.

Engage surveyor/tax specialist for a detailed site inspection and cost breakdown

04.

Compile valuation report and supporting documentation for the claim

05.

Submit claim to HMRC via corporation tax return Success

To illustrate the potential impact, here’s a Case Study for a Manufacturing Facility we assisted few months ago.
Property Expenditure (Acquisition & Refit)
£5.1 million
Additional Tax Saving
£143,860

(based on 19% corporation tax rate)
Standard Accountant Claim
£467,000
Innovation Tax Claim
£1,224,000

Beyond Capital Allowances : Unlock Complementary Tax Incentives

While the Capital Allowances delivers valuable tax savings, most businesses qualify for multiple financial incentives. We help you unlock every available opportunity across your operations:

Capital Allowances, Claim Capital Allowances, Innovation Tax

R&D Tax Credits →

We help companies seeking a scientific or technological advance in their field to recover between 16% – 33% of the costs incurred in R&D.

Grant Funding →

Never miss an opportunity to apply for a UK grant: our team of experts will ensure your application has the best possible chance if success.

Patent Box →

Our Patent Box service aids companies in benefiting from reduced tax rates on profits derived from patented inventions, providing substantial tax relief.

Energy Incentives →

We help businesses claim energy tax incentives through Climate Change Levy Exemption, Energy Intensive Industries Tax Relief and UK ETS Compensation Schemes.

HMRC Enquiry Support →

We provide expert assistance in responding to HMRC enquiries, ensuring the response is clear, sufficiently detailed and in-line with HMRC's expectations.

Capital Allowances Specialists

Our proactive approach ensures your application aligns strategically with current trends, maximising your funding potential.