Capital allowances on your property could hold an overlooked tax saving.Find out what’s inside.

They are tax deductions for qualifying assets used in a business, including certain fixtures within commercial premises, such as heating, electrical, water and lift installations. Identifying eligible expenditure may reduce taxable profits. The value depends on the assets, ownership, available relief and the claimant’s tax position.

The expenditure generally needs to be on qualifying assets, such as plant, machinery or certain fixtures, used in a business. Land and the building itself are not plant and machinery. Where fixtures are bought with a property, the seller’s qualifying expenditure generally needs to have been pooled, and the buyer and seller may need to agree the value of the fixtures. Time limits apply, and the right treatment depends on who incurred the cost and when. A specialist can check your records against the rules before you decide whether to proceed.

No. Land and the building itself are not plant and machinery. A specialist identifies the qualifying assets and supports the amount attributable to them. Separate structures and buildings relief may apply to eligible construction expenditure; it should not be confused with a fixtures claim.

An older purchase can still be worth reviewing, but age alone does not establish entitlement. The acquisition date, the seller’s tax position, pooling and any fixtures agreement all matter. Tax-return amendment deadlines and the period in which particular relief is available also need checking.

Where the fixtures rules apply, the seller’s qualifying expenditure generally needs to have been pooled for allowances to pass to a buyer. This applies to relevant transfers from 1 April 2014 for Corporation Tax and 6 April 2014 for Income Tax. Earlier acquisitions have different conditions, so a specialist should check the transaction history.

It is a joint agreement between buyer and seller that fixes the part of the purchase price attributable to certain fixtures for capital allowances. The normal time limit is two years from the relevant transfer. Other ways of meeting the fixed value requirement can apply. Raise the issue before completion wherever possible.

Potentially, where they incur qualifying expenditure on their own fixtures or equipment. Paying rent alone does not create entitlement to allowances on the landlord’s assets. A review checks the lease, who paid, contributions and ownership of the relevant items.

Start with what was already reviewed. A further look may be useful for later improvements or assets outside the original scope, but the same expenditure cannot simply be claimed again. Existing capital allowance schedules and specialist reports help avoid duplication.

Not necessarily. A valid claim may reduce current or future tax, or lead to a repayment where earlier tax can be adjusted. Allowances can be used at different times and the result depends on profits, losses and the applicable rules. Our illustration shows tax value under stated assumptions, not a promised payment.

They need separate consideration. Restrictions generally apply to assets within dwellings, while some communal areas can be treated differently. The furnished holiday lettings tax regime ended in April 2025, so older holiday-let examples should not be assumed to apply to new expenditure. Tell us about any mixed use at the start.

The initial review and introduction through The Business Review Co. are free and without obligation. An independent specialist assesses any claim and explains their charges before you agree to work. We may receive a referral fee. Your enquiry is the start of a discussion, not an instruction to submit a claim.

Possibly. A tenant who pays for qualifying plant and machinery as part of a fit-out or improvement may be able to claim allowances on that spending, even though someone else owns the building. Qualifying items can include integral features, such as lifts, space and water heating systems, air-conditioning, hot and cold water systems (but not toilet and kitchen facilities) and electrical systems, including lighting systems. A specialist can check which items your business bought and whether they qualify.

First, the costs that qualify as plant and machinery are identified. Integral features, such as lifts, space and water heating, air-conditioning, hot and cold water systems (but not toilet and kitchen facilities) and electrical systems, go into the special rate pool, while most other qualifying plant and machinery goes into the main pool. For each pool, the closing balance from the last period is increased by qualifying purchases and reduced by the value of disposals. The pool’s rate is applied to that adjusted balance, the allowance is deducted, and the remainder is carried forward as the next period’s opening balance. Some expenditure may instead qualify for the Annual Investment Allowance or, for companies only, full expensing or the 50% first-year allowance, but the same expenditure cannot be claimed under more than one allowance. The tax value depends on the allowance used, the claimant’s tax position and timing, so an independent specialist can work through the figures with your accountant.