Capital Allowances

Property & Land Tax Relief Advisory - Capital Allowances:

Capital allowances are a form of tax relief that allows individuals and businesses to deduct the cost of certain types of capital expenditures from their taxable profits. These allowances are designed to encourage investment by businesses in assets that are essential for their operations. They are a crucial part of the UK tax system and provide a way for taxpayers to reduce their overall tax liability.

What Are Capital Allowances?

Capital Allowances allow businesses to deduct the cost of certain capital expenditures from their taxable profits. This includes:

  • Plant & Machinery Allowances
    Fixtures integral to the function of a property (e.g., heating, lighting, security systems, etc.).

  • Integral Features
    Electrical systems, lifts, air conditioning and water systems.

  • Structures & Buildings Allowance (SBA)
    Relief on qualifying construction costs of new commercial buildings.

  • Enhanced Capital Allowances (where available)
    Available for certain energy-efficient or water-saving equipment.

When Can They Be Claimed?

  • On acquisition of second-hand commercial property

  • On new builds, extensions or refurbishments

  • On fit-outs, developments or conversions of commercial properties

  • Retrospectively on unclaimed historic capital expenditure

Our Approach:

  • 1. Initial Consultation & Information Gathering

    · Understanding Your Investment: We start by engaging with you to understand the specifics of your building or structure investment, including the nature of the property, the purpose of the investment, and the associated expenditures.

    · Document Review: Our team will review all relevant documentation, such as purchase invoices, architectural plans, construction contracts, and any other records that detail the investment in the property.

  • 2. Site Survey & Assessment

    · Comprehensive Site Survey: To ensure all qualifying expenditures are identified, we conduct a thorough on-site survey of your property. Our experienced surveyors will assess every aspect of the building or structure to identify all capital allowances opportunities.

    · Detailed Assessment: During the survey, we examine elements such as the building's fabric, fixtures, and fittings. We document these elements in detail, considering factors like the building's age, condition, and any previous renovations or alterations.

  • 3. Analysis & Categorisation of Expenditures

    · Cost Breakdown: Our team will meticulously analyse the data collected from the site survey and document review. We categorise expenditures into qualifying and non-qualifying items, ensuring accuracy in your claim.

    · Identification of Qualifying Assets: We identify assets that qualify for different types of capital allowances, such as Structures and Buildings Allowances (SBAs), Plant and Machinery Allowances, and Integral Features Allowances.

  • 4. Preparation of Capital Allowances Report

    · Comprehensive Report: Based on our analysis, we prepare a detailed capital allowances report outlining all identified qualifying expenditures and the corresponding allowances. This report serves as the basis for your claim.

    · Clear Documentation: Our report includes clear documentation and justification for each claimed item, ensuring compliance with all relevant tax laws and regulations.

  • 5. Internal Westlock Partners Review & Client Approval

    · The Westlock Approval: Before finalising your Capital Allowances report, all calculations and supporting evidence are reviewed by a senior specialist, independent of the drafting team. This ensures accuracy, objectivity, and full compliance with HMRC guidance. Any issues are resolved prior to sharing the report with you for approval.

    · Client Review & Approval Process: We provide the capital allowances report to you for review and feedback. We will address any queries or concerns you may have, ensuring you are fully satisfied with the report before submission. Once we have received your approval, we will proceed with the submission of the claim.

  • 6. Submission & Follow-Up

    · Claim Submission: We assist you in submitting the capital allowances claim to HMRC, ensuring all necessary forms and documents are included.

    · Follow-Up Support: Our team remains available to provide support and answer any questions from HMRC regarding your claim, ensuring a smooth and efficient process.

  • 7. Ongoing Monitoring & Updates

    · Monitoring Changes: We keep abreast of changes in tax legislation and ensure your capital allowances claims are up to date with current laws and regulations.

    · Future Claims: As your business continues to invest in property and structures, we are here to assist with any future capital allowances claims, ensuring you maximise your tax benefits.

Get in Touch

If you’ve recently acquired, built, renovated, or fitted out a commercial property, you may be sitting on valuable capital allowances that remain unclaimed.

At Westlock Partners, we work closely with businesses, investors, and property professionals to uncover and maximise these tax relief opportunities, often delivering substantial cash flow benefits with minimal disruption.

To find out how we can help you unlock hidden value from your property expenditure, speak to our team today.