Embedded Capital Allowances

What are embedded capital allowances?

Embedded Capital Allowances are a valuable form of tax relief available to anyone owning, buying or selling commercial property and are available on a wide range of properties.

You or your business are eligible to claim for Embedded Capital Allowances if you can answer yes to the following questions:

  • Do you own a commercial property?

  • Do you rent a commercial property that you have redeveloped?

  • Are you a UK taxpayer?

Claiming can result in a cash rebate from HM Revenue & Customs or a reduction in current and future tax bills or both. Whilst most ‘everyday’ purchases (such as computers, carpets, desks etc.) would usually have been claimed for, the more complex and significant items are normally avoided by Accountants because they don’t have the information to deal with them. These include central heating, air conditioning, cabling, security systems and much more.

Value of property identified in allowances:

Examples of allowances that we are able to identify:

Embedded Capital Allowance FAQs

Who qualifies for Embedded Capital Allowance relief?

If you or your company pay tax in the UK and own a commercial property, the chances are you will qualify.

I bought my property 10-15 years ago, am I still eligible for Embedded Capital Allowance?

There is no time bar on claiming for property bought or built before April 2012. After April 2012 the rules changed, which effectively imposed a tax year time limit where allowances have previously been claimed. From April 2012 these rules have been tightened and if you fall into this category you need urgent advice.

Will claiming Capital Allowances reduce the value of my property?

No, these allowances are not taken into account when a property is valued. However, it could help you to negotiate a future sale.

Why is so little known about Embedded Capital Allowances?

Whilst these allowances have been available for a number of years, this is a specialist area requiring a team of Tax Specialists and Surveyors to work together to identify the allowances and formulate a legitimate claim.

My Accountant already deals with my tax affairs.

Accountants are very skilled at claiming for invoiced capital expenditure such as office furniture and computers. However, they rarely have the surveying skills to enable them to claim unseen capital items which may be part of the fabric of a building.

I am buying or selling a commercial property.

You need urgent advice – unless appropriate caveats are included in the purchase and sale agreement before contracts are exchanged then valuable relief may be lost.

Contact Us

If you would like to find out whether we can help you to receive a tax rebate from HMRC, get in touch by giving us a call or leaving your details in the contact form below: