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!

Full expensing on Capital Allowances made permanent

In March 2021, when the decision to raise the corporation tax rate to 25% was initially disclosed, a concurrent introduction of the super-deduction was made aimed to mitigate the impact of this transition. However, as the super-deduction concluded on March 31, 2023, amidst persistent challenging economic conditions in the UK, there was widespread anticipation for the government to take additional measures to stimulate business investment.

Responding to these expectations, the UK Chancellor unveiled a significant initiative in this year’s Spring Budget—full expensing of Capital Allowances now to be made permanent instead of ending in 2026 to increase business investment. This allows for a 100% deductible first-year allowance on qualifying expenditures. In practical terms, Full Expensing implies that companies stand to benefit from up to 25% in-year tax deduction for Capital Expenditures related to significant portions of their plant and machinery.

  • a 100% first-year allowance for main rate expenditure — known as full expensing
  • a 50% first-year allowance for special rate expenditure

What does this mean in practice? Buy a new building with £5m plant and machinery by the last day of your financial year and it could save you tax of £1.25m.

Another example, as a company you invest £1m in new plant and machinery, equipment, fixtures and fittings and you can reduce your tax bills by as much as £250k in the year you invested.

Some points to consider

  • It is for companies only.
  • It is on NEW qualifying plant or machinery, so with ‘second hand’ buildings the Buyer has to primarily rely on the £1m Annual Investment Allowance.
  • There are some notable exclusions, such as cars, as well as many assets used for leasing.

If you would like to discuss your individual circumstances regarding full expensing in more detail please get in touch directly.






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