Tel: 0161 923 0009  |  |  Contact Details  


Download PDF files

Capital Allowance Overview

Capital Allowances are a form of tax depreciation that provide Tax Relief for property owners, occupiers and investors.

Since 2011, when industrial buildings allowances were abolished, there has been no tax relief available for expenditure incurred on the raw building or structural components of a building, such as the floor, roof, walls and so on.

Instead Capital Allowances are available (by reference to set percentages) for expenditure on different types of asset classes and, in terms of commercial properties, this includes expenditure incurred on items such as:

Plant & machinery

Integral features
Short-life assets
Long-life assets
Energy-efficient and water-saving assets

Further legislation which came into force in April 2014 has an impact on claims made by a purchaser of a second hand commercial property purchased after that date.

Commonly Capital Allowances are available when a commercial property is purchased for use in the course of a trade, or property investment business, or when commercial new-build, extension or fitting out/refurbishment works are undertaken.

Good examples of such properties include:

industrial units
leisure facilities
filling stations/garages
distribution centres
haulage yards
transport facilities
multiple office complexes
retail shops
nursing / residential homes
clubs / pubs / restaurants
golf courses / sporting venues
dental surgeries
cold storage facilities
staff welfare facilities

© Copyright. Capital Allowance & Tax Recovery Limited. Web design by Click Media: