Capital allowances tax relief allows commercial property owners to claim on items embedded within the fabric of a property that were acquired during its purchase. This relief can be applied to a wide range of fixtures, including electrical and heating systems, water systems (including underground pipework), kitchens, bathrooms, door handles, and carpets.
As a statutory UK tax legislation, Embedded Capital Allowances Tax Relief is accessible for all properties used for business purposes. This includes a diverse range of businesses from B&Bs and guest houses to offices, nurseries, pubs, and restaurants.
Eligibility for claiming this relief is not affected by the property’s former use, how long ago it was purchased, or whether original fixtures have been repaired or replaced.
Claiming capital allowances is purely an adjustment to income or corporation tax and does not impact your financial statements or the market value of your property. Additionally, it does not affect your future capital gains tax liabilities should you decide to sell.
Capital allowances on embedded fixtures is a specialist area that is often overlooked or misunderstood. Historically, only large businesses and property investors have made these claims. However, it is estimated that 8 out of 10 business properties contain unclaimed tax relief that could amount to thousands of pounds. Most property owners and their accountants are simply not aware of the potential savings.
To explore the unclaimed tax savings available in your commercial property, contact us today. Unlock the financial benefits you are rightfully owed.
