Capital allowances tax relief

What is capital allowances tax relief?

If you hold either a freehold or leasehold interest in commercial property, then you may qualify for tax relief through a capital allowances claim. You could be entitled to between 10-45% of money spent on property and its qualifying plant and machinery in tax relief.


Quantity surveyor or tax adviser – or the best of both

GovGrant’s in-house team of experts combines the skills of dual-qualified professional quantity surveyors and chartered tax advisers to give you a specialist service.

Our insight, your reward

This tax relief is ‘property specific’, we bring a greater understanding of how projects, contracts and pricing can be put together so that you will be able to optimise your tax position.

We ensure that the capital allowances claim is submitted to HMRC to reduce your tax liability immediately and for as long as you own the property. We can review both historic property purchases and any future plans you may have.


Act now – use your Annual Investment Allowance (AIA)

If you have bought or refurbished a property in the past 2 years a detailed review of the expenditure should be carried out as a matter of urgency. The Annual Investment Allowance gives 100% tax relief on the first £200,000 of expenditure identified as plant and machinery, but it must be claimed within 2 years.

100%
tax relief on the
first £200,000
must be claimed
within 2 years



Capital allowances apply to most commercial property

Whether you own a small commercial shop or an entire shopping centre – the same rules apply to everyone. We are passionate about is uncovering value for you and your business.

 

We work with SME clients across the UK to identify all capital allowances for industrial and manufacturing spaces that are held as Freehold Assets. We have uncovered hundreds of thousands of pounds of historical tax relief for our clients.

If you are fitting out an office we can carry out a detailed analysis of the construction fit out expenditure. This can result in up to 80% of expenditure being eligible for tax relief. We can also review assets against the Enhanced Capital Allowances Scheme which may result in further tax credits for environmental assets.

It’s never too late to claim, we have worked with families to carry out historical reviews of their commercial property, purchased up to 20 years ago. This can result in tax savings to owners on the acquisition costs of up to tens of thousands of pounds.

We can help – whatever business you’re in

  • Aerospace
  • Automotive
  • Education
  • Electronics
  • Energy
  • Engineering
  • Food & Drink
  • Healthcare
  • Hotels
  • Infrastructure
  • Marinas
  • Media & Technology
  • Mining & Aggregates
  • Oil & Gas
  • Petrochemical
  • Pharmaceutical
  • Sports & Leisure

Capital allowances apply more often than you think

Whenever you are spending money acquiring or developing property then capital allowances can apply.

New build

Dilapidations

Disposal

Refurbishment/
plant replacement works

Fit-out

Lease incentives/
capital contributions

Direct acquisition

Indirect acquisition via an SPV or unit trust



What are Research and Development Allowances?

For innovative businesses, the capital allowances can be even greater. The government is keen to incentivise those organisations that pursue a sustainable agenda and those that have a focus on research & development. And the tax system reflects this.

Make sure that you are being rewarded for the capital that you invest in innovation.


Research and Development Allowances – maximising your investment

Research and Development Capital Allowances, also known as RDAs, are a tax relief for businesses incurring capital expenditure on qualifying R&D activities.

If you are spending capital on assets that are used for R&D activities you could receive 100% tax relief. Spending on the following is always allowable under RDAs:

R&D facilities

R&D facilities (such as buildings) or on refurbishing a development facility

R&D centre

If an R&D centre forms part of a larger facility – and if the centre accounts for at least 75% of the overall cost of the facility – then R&D Capital Allowances can apply to the entire facility

Laboratory equipment

Laboratory equipment

Company cars

Company cars for R&D staff


Claiming
RDAs can be
straightforward

There is
no upper limit
on the amount
which can be claimed

100%
tax relief
on qualifying
spend

It takes specialist capital allowances expertise, coupled with experience of identifying qualifying R&D, to maximise your RDAs relief. GovGrant takes an integrated approach to work with businesses to maximise the value of their innovation.

Call us for a free review or advice.


What are Enhanced Capital Allowances?

Energy efficient technology can attract tax advantages for businesses, which can make investing in new equipment more affordable.

When buying any equipment as part of a refurbishment or construction project it’s a good idea to discuss purchasing assets that are eligible for Enhanced Capital Allowances (ECAs). This results in a tax relief or tax credit with respect to the cost of the items such as:

  • Air conditioning installations

  • Boiler equipment

  • High speed hand air dryers

  • Lighting

  • Pipework insulation

  • Refrigeration equipment

  • Solar thermal systems

  • Uninterruptible power supplies

Rewarding sustainable investment

100%
tax relief
on certain
listed assets

19%
tax relief
for loss making
companies

Early advice
to selecting right
equipment

GovGrant works with businesses to maximise the value of innovation – including green technologies.
Call us for a free review or advice.

Facts
and figures

Save £50k in tax for every £1m invested in acquiring commercial property

Save £160k in tax for every £1m of expenditure on a refurbishment project

 

Research is creating new knowledge.

Hertfordshire Chamber of Commerce
British Plastics Federation
gtma
Insurtech UK