Capital allowances on commercial property
A statutory tax relief on the fixtures built into your building. Here is what it is, why it goes unclaimed, and how the report works.
Yes, and it is worth answering first
Capital allowances are a tax relief written into law, most recently consolidated in the Capital Allowances Act 2001. They are not a loophole and not aggressive planning. The government lets a business set the cost of certain assets against its taxable profits, and a commercial building is full of those assets.
Where a claim is made, it can mean relief on tax already paid, a reduction in future tax, or both. Whether a claim can or should be made is a matter for a qualified accountant, who reviews our report and decides.
The value built into the fabric of the building
When you buy, build or refurbish a commercial property, a chunk of what you spend goes on the things built into the fabric: the wiring and lighting, the heating and air conditioning, the plumbing, the fire and security systems, the data cabling, the lifts. These are plant and machinery in the eyes of the law, and they qualify for relief. They were never itemised as separate lines in your accounts, so the relief sits there unclaimed until someone goes looking for it properly.
What are you claiming for?
Heating & hot water
Boilers, radiators, pipework and the whole hot and cold water system.
Electrical & lighting
Wiring, distribution, power and the lighting installed throughout the building.
Air conditioning & ventilation
Cooling, heating and air-handling plant built into the property.
Sanitary & washrooms
Toilets, basins, fittings and the drainage that serves them.
Fitted kitchens & catering
Built-in kitchens and the catering equipment fixed into commercial premises.
Security & fire systems
Alarms, CCTV, access control and fire detection wired into the fabric.
It sits just outside what an accountant does day to day
Your accountant claims the assets that show up in your books: the van, the desks, the equipment you invoiced. Identifying what is likely built into the fabric of a building and working out how much of the purchase or build cost it represents, is a particular piece of work that ordinary accounts preparation and compliance does not cover. Most accountants do not claim it, or do not claim it to the fullest extent, simply because they do not understand what can be claimed and how the system works. Your accountant is not failing you. This sits outside their training, which is why specialists like us exist. We are not accountants or tax advisers, but we are experts, and this is what we do every day of the week.
How a claim is actually worked out
There are two numbers at the heart of a claim, and they are different things. People confuse them, which is how claims get overstated. Our report keeps them rigorously separate.
The qualifying proportion
How much of the money spent on the building counts as plant and machinery. It is a costing estimate, and it varies by building type. An office, for example, typically sits somewhere around 20 to 30 per cent.
The writing-down allowance
How fast that qualifying amount is relieved against tax each year. It is fixed by law and reduces on a declining balance, so the relief is spread across years rather than paid in one lump.
SiteRegister turns these two numbers into your estimate
It works out the qualifying proportion and the writing-down for your specific property, applies the statutory rates, and shows every figure with its source.
A realistic estimate, never a guarantee
The claim depends on the property and your tax position, and the outcome may be a cash refund, a reduction in your future tax, or both. The figures in our report are indicative. Your accountant verifies them against your own records and decides whether and how to claim. Sometimes a review finds little or nothing, and if that is the case for you, we will tell you straight.
See whether there is a claim in your property
A short, no-pressure conversation. There is no upfront cost, and you only pay when a claim succeeds.