Capital Allowances – Commercial Property, Plant & Machinery

Whether you have purchased new commercial premises (freehold or leasehold), improved, or refurbished existing premises or have invested in Plant & Machinery, you could be entitled to significant tax relief on that expenditure in the form of Capital Allowances.

Calculated as a deduction from your annual profits, Capital Allowances reduce your Corporation (or Income) Tax liability and can massively impact the amount of tax that you pay. In extreme cases, this can even cancel a Corporation Tax Liability even when a profit has been recorded.

Is your business eligible?

Have you purchased or taken out a long-term lease on a commercial (non-residential) property at a cost of £300,000 or more?

Have you spent £100,000 or more developing a commercial property whether owned or rented?

Capital Allowances are available to any UK company, partnership or sole trader, who has incurred capital expenditure, usually through the acquisition of an asset (defined as an item with a useful life of 2 years or more). Theoretically, you could be a UK tax payer who owns commercial property in another country, and you may still be eligible!

A trade e.g., hotel, care home, manufacturer

A landlord who owns and rents out commercial property

Owners of a Furnished Holiday Lets in the UK or the European Economic Area

Owners of commercial property rented out abroad

The Process

1.1 Initial Discussion

1.2 Initial Review

1.3 Engagement

You will have a discussion with one of our specialist consultants to discuss your claim, the process and to let you know what information we require. Our technical team will look at information provided by you – property information, accounting & tax records & public information If a claim is possible, we will then proceed with a bespoke guide outlining your potential claim and issue an engagement letter so that we can start working with you on building the full claim.

2.1 Information collection

2.2 Survey of Property

2.3 Technical Analysis

A member of our team will be in contact to request any further information we may need.

We will pre-arrange a date for us to visit and survey your property and work with you to ensure we maximise your claim.

We will then use the valuations from the previous step and all other information to build your bespoke claim. We will be sure to look through and remove any items that do not qualify or have already been claimed by your accountant.

3.1 Claim summary & tax Work

3.2 Claim submission

3.3 Final Report

Our technical analysts will ensure all qualifying items are built into your claim and that you are aware of the best approach for your tax. Where possible we will amend your tax returns and resubmit them to HMRC. We do this in house and we maintain direct communication with HMRC on your behalf. Once the claim has been completed we will issue a copy of the report to yourself & your  accountant

 

Whether its your or HMRC that have any questions, we will be here to assist with any questions.

We also offer a variety of other services that you may be eligible for, we will work with you to ensure you are in the optimal tax position.

To start your initial assessment, please click the “start a claim” button below and complete the short questionnaire 

How much can your business claim?

Typically, capital allowances offer relief over time to reflect the life of the asset purchased. However, a suite of enhanced and accelerated allowances, intended to encourage capital investment in the UK, often allow for significant spend to be offset immediately as a first-year allowance.

The enhanced and accelerated allowances include a 130% super-deduction and a 50% first year allowance, both of which were introduced from April 2021. As per our simple illustration below, capital allowances reduce the amount of tax payable on your profits, releasing cashflow for further investment back into your business.

Illustration

Without Capital Allowances

With Capital Allowances

Profit Before Tax

£2,500,000

£2,500,000

Capital Allowances

£0

£1,000,000

Taxable Profit

£2,500,000

£1,500,000

Corporation Tax Payable @ 25%

£625,000

£375,000

Saving £350,000

What assets qualify for capital allowances?

From shops to offices, hotels to restaurants, care homes to medical practices, Capital Allowances can be claimed on items that are kept for use within most types of businesses, which include (but are not limited to):

Examples of Plant & Machinery

Examples of Integral Features

Computer equipment and servers

Solar panels

Tractors, lorries, vans

Lifts, escalators and moving walkways

Ladders, drills, cranes

Electrical systems, including lighting & fire safety systems

Office chairs and desks

Hot and cold-water systems

Electric vehicle charge points

Air-conditioning and air-cooling systems

Refrigeration units

Compressors

Foundry equipment

It is not only the cost of the item which may be claimed but also the cost of installation and other associated costs which can be attributed to their installation e.g., design fees.

Make a new claim with Blue Commercial

Providing the tax, surveying and legal know-how, our leading team of experts work with you to identify allowances that might otherwise have been missed. While your accountant may capture the allowances on more routine spend, property purchases and significant projects of improvements involve additional complexities and obscurities, which is where we come in, to unlock the full potential of the tax relief available to you.

Our Products

Energy Reclaims

UK businesses can claim up to 80% of all energy bills whilst using brokers going back as far as the year 2000.

Have you overpaid?

Energy Reclaims

It’s estimated that 80% of businesses have overpaid on their energy contracts

As most energy contracts do not disclose the brokers fee, UK businesses can claim up to 80% of all bills and contracts whilst using brokers going back as far as the year 2000.

We claim from the energy supplier, not the broker meaning our claims are 2-3 times higher than our competitors. Our panel of solicitors charge the lowest fees on the market, and are capped at a maximum of 30%.

No win, no fee - see if your business qualifies

Land Remediation

Claim up to 150% of the cost of cleaning up and restoring contaminated or long-term derelict land.

Find out more

Land Remediation

Introduced in 2001 (and updated in 2009), Land Remediation Relief enables businesses to claim corporation tax relief of up to 150% of the cost of cleaning up contaminated land or buildings.

Qualifying costs include the remediation of contaminated land, removal of asbestos from buildings, breaking-out buried structures and the treatment of harmful organisms and naturally occurring contaminants such as Japanese Knotweed, radon and arsenic.

Relief can be available on developments, regeneration projects, fit-outs and refurbishments.

The time limit for retrospective claims is within 2 years of the end of the accounting period for which the qualifying expenditure was incurred.

Testimonials

What people are saying...

A lot of firms contacted us about the R&D claims. Recommended by a ...
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Jon Crisp
A lot of firms contacted us about the R&D claims. Recommended by a client, they know exactly what to do and run a nice efficient system to assist in getting the required application together. Very helpful and friendly team. They achieved a great result for us.
Jon Crisp
The team made the process easy for us to complete. Clear and precise instructions, supportive ...
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S. Mac Rory
The Guardian Serv
The team made the process easy for us to complete. Clear and precise instructions, supportive and informative advisors at every step of the way. An excellent and a very valuable service which resulted is a sizeable tax rebate and has helped us set up ongoing procedures to track our R&D spend for the future.
S. Mac Rory
The Guardian Serv
The team talked through with us our project in detail to make the application straightforward ...
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Suzanne Elsey
Link I.D.
The team talked through with us our project in detail to make the application straightforward and their system allowed us to see each stage it went through. Once submitted the money came through quite fast, I am sure it was because they were so thorough during the process.
Suzanne Elsey
Link I.D.
The team helped us every step of the way through our claim and to a ...
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MegaMow
The team helped us every step of the way through our claim and to a successful outcome. Great service - highly recommend.
MegaMow
Great team, very helpful. After my accountant had not been very helpful, the team were ...
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Damian Markham-Smith
Great team, very helpful. After my accountant had not been very helpful, the team were very helpful and persevered. Very positive result.
Damian Markham-Smith
I referred a a family member who was struggling with a complex R&D ...
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Mr Gorsia
I referred a a family member who was struggling with a complex R&D claim, the team was amazing throughout the claim, we was kept up to date on each stage of the claim and they went over and beyond to explain all the technicalities. I would highly recommend their services.
Mr Gorsia
Amazing service. Guided us through the process with clear and concise guidance. Couldn’t...
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Dale
Amazing service. Guided us through the process with clear and concise guidance. Couldn’t recommend them higher.
Dale
Fantastic service, this is our third time using them and our experience is always professional, ...
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The Maintenance Team Ltd
Fantastic service, this is our third time using them and our experience is always professional, seamless and efficient. The PrimeBlue staff are all very knowledgeable and we are also immensely appreciative to the director Colin who was very accommodating towards our specific needs.
The Maintenance Team Ltd