Capital allowances are a form of tax relief given on costs incurred on commercial property acquisition and refurbishments and is available for commercial property investors and UK business owners.
This type of allowance is given for costs incurred on plant and machinery as a tax allowable expense, therefore reducing taxable profits and saving money. In most instances our clients even receive a tax refund.
Research has shown that few commercial businesses are taking full advantage of this opportunity. Many already claim capital allowances on small items such as computers, office furniture and cars, but rarely are aware of the significant tax savings on offer through other ‘plant and machinery’ (P&M) items which are embedded within the property.
Plant of machinery claimable under capital allowances range from electrical and heating systems, ventilation and lighting installations through to fire/security alarms, carpets, door handles and more.