UHY Hacker Young | Chartered Accountants

Capital allowances


Companies and businesses that have incurred expenditure on property may make substantial tax savings by reviewing their capital allowances position.

Tax relief for capital allowances is available on expenditure on property held as a fixed asset in the business’s accounts. Qualifying expenditure can arise on:

  • Property constructed by the business itself
  • New property acquired
  • Second hand property acquired
  • Enhancements, refurbishment, alterations and extensions to existing property
  • Leasehold improvements

Over the past 10 years, capital allowances have changed substantially. The compliance burden has increased in relation to additions on fixtures; tax relief on industrial buildings has been removed; and a new category of expenditure on features integral to a building has been introduced. All of this means that businesses should reassess their capital allowances claims on existing properties, and review their position on property additions in order to maximise the tax reliefs that are due.

At UHY, we have considerable expertise with capital allowances. We work with specialist surveyors in order to identify the correct amount of relief to claim. We also advise on property purchases and sales to help steer clients through the complex capital allowances legislation. We can also work with clients prior to the construction of properties, ensuring that the appropriate documentation and information is in place in order to justify the capital allowances claim.

The next step

For more information about the services we offer our clients in the property sector, please contact one of our advisers today.

Alternatively, visit the property sector page on our main website.