Capital Allowances in Office buildings

Do you own a commercial property in the UK?

Capital Allowances in Industrial Units / Factories

Are you a UK Tax payer?

Gym / Leisure building

If so, you may be eligible to claim
Capital Allowances

Bed and Breakfast / Hotel Capital Allowances

Tax relief of over 25% of the property’s original purchase and refurbishment price is frequently available.

Corporate Office Capital Allowances

We take the hassle out of your Capital Allowances Survey

Capital Allowances available on hotels

If you are a commercial property owner, and a UK tax payer, please get in touch!

Capital Allowances Misconceptions

I will pay more capital gains tax when I sell the property if Capital Allowances are claimed

This is a common misconception particularly amongst accountants and solicitors but guidance from HMRC is very clear – where Capital Allowances have been claimed and a capital gain is made on the sale of the property no adjustment is necessary.
However, where Capital Allowances have been claimed and a capital loss is made on the sale the loss should be reduced by up to the Capital Allowances claimed.

Capital Allowances are a timing difference, what is gained now is lost when the property is sold

This is another very common misconception. The amount of Capital Allowances transferred when a property is sold is dependent on what the parties agree via an election under section 198 CAA 2001. If you are considering a property sale please contact us.

The purchase agreement allocates the consideration between the asset categories

Whilst the Purchase Agreement may have addressed chattels, the legislation is clear that the fixtures within a property must be the subject of an election under s198 CAA 2001. Where such an election is inappropriate, perhaps because the property is being purchased from a pension fund, any Capital Allowances claim must be made on a just and reasonable basis in accordance with s562 CAA 2001.

The fixed assets note in the Accounts determines what Capital Allowances can be claimed

This is not true. Tax legislation determines what Capital Allowances can be claimed.
Furthermore, when Capital Allowances in commercial property are claimed the cost of land and buildings should not be reduced in the note to the Accounts.

My accountant has advised Capital Allowances claims can only be made on properties purchased within the last 2 years

What your accountant may be referring to is a tax return can only be amended up to 2 years after the end of year.
Eg. a company with a year ended 31 December 2021 can amend the return by 31 December 2023 and an individual has until 31 January 2025 in which to amend the 2022/23 tax return.

Therefore, if a company purchased a property during the year ended 31 December 2023, a Capital Allowances claim can be made on or before 31 December 2025. In this instance should a claim be made after 31 December 2025 the company will have lost the ability to claim FYA and AIA and only WDAs (Writing Down Allowances) will be available.

CA Select Capital Allowances

CA Select Limited
Hunters Lodge
Old Lane
Brown Edge
Stoke on Trent 

  Steve: 07817 149175
Dafydd: 07737 124576

Company No.11323010

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