Capital Allowances

Are you getting a fair amount?

Many UK businesses may be paying too much tax because they underestimate the proportion of their capital expenditure which qualifies for capital allowances.

Although on some occasions identifying qualifying expenditure is straightforward, in many instances the expenditure on buildings and building works can be less than straightforward. This can require the application of not only tax but also surveying skills. It is therefore often difficult for businesses to work out the full relief due to them.

Similar identification issues arise with expenditure on certain categories qualifying for enhanced reliefs (for example: Land Remediation Relief and 'green plant' etc.)

Capital allowances are available to those who incur capital expenditure on extensions, refurbishments, new builds or even second property acquisitions. Whilst the government and HMRC are forever closing perceived tax loopholes and putting pressure on businesses to pay the 'right amount of tax', businesses will fall behind if they fail to take full advantage of tax incentives such as capital allowances which are fully encouraged by the government.

How can we help?

Our specialist capital allowances team (Sunil Sharma and Michael Robertson) consists of chartered surveyors who are experienced in the capital allowances legislation as well as the construction matters. By better understanding the legislation and construction aspects, the skill sets have on many occasions allowed them to maximise a claimant’s capital allowances.

It is more important than ever before to consider the capital allowances implication before buying or selling an existing property, in order to ensure the correct documentation is in place otherwise these allowances could be lost forever. 

Case Studies

Because each case is unique, different levels of allowance may be achieved. Recent examples include: 

A 32 bed, new build care home   48% of the development costs
A 72 bed, new build care home   45% of the development costs
Acquisition of a design and build, owner occupied industrial unit   24% of the purchase cost
Acquisition of a modern office building by property investor   25% of the purchase price
Dental surgery fit out   67% of fit out costs
Acquisition of a public house   36% of purchase price

If you would like further information on our services please contact us on 0151 228 8977 or capitalallowances@jkca.co.uk