Commercial Property Capital Allowance Claims Explained By Hayven Property Tax

If you are a UK tax payer and own a commercial property or have a financial interest in commercial properties, then reading this article could prove be the most economically positive 10-minutes of your year.

If you are involved with the buying, selling or spending money on a commercial building they you may be eligible to use “Property Capital Allowances”. This provides an opportunity to make a claim for a tax refund or mitigate future tax liabilities.

Commercial Property Capital Allowance ClaimsYou may be under the misapprehension that your Accountants are aware of this tax relief. There is a general lack of understanding or application of the legislation and case law governing the availability of the relief from capital allowances. Most accountants do not fully appreciate the finer details or may use mainstream accountancy software that will likely miss these tax benefits for your business. Which is why capital allowances are either under-claimed or not claimed at all. It is thought that only 10% of UK commercial property owners have made the claim.

All Accountants will be aware of, and claiming against, “movable” items, such as chairs, computers, desks etc. as well as items used within your trade, such as plant and machinery. Allowances for buying, selling, new builds, refurbishment and “fit-outs” came into effect a relatively short time ago and have seen major and detailed changes in 2008, 2012 and again in 2014. Therefore, it is not feasible for all accountants and tax advisors to be fully aware of what is becoming a specialist issue.

Although since 2011, it has not been possible to make capital allowance claims against the actual building or structural aspect of the property such as walls, ceilings and floors, capital allowances can be claimed against “immovable” items that make up integral features of the building such as air con, electrical and plumbing systems, kitchens, security systems, lighting and other items commonly found within commercial properties.

Commercial Property Capital Allowance Claims

Your potential claim against capital allowances will be depend on your specific details i.e. property use, property value, valuation of the “fixtures”, when and who purchased them, any previous claims and other mitigating factors.

However, an indication or general rule of thumb for claims is:

Property Type             Activity                                                Percentage Claim

Offices                         Buying/Selling                                     15% to 35%

Offices                         New Build/Refurbishment                15% to 35%

Hotels and B&B’s      Buying/Selling                                     20% to 40%

Hotels and B&B’s      New Build/Refurbishment               40% to 80%

Industrial Units         Buying/Selling                                     5% to 25%

Industrial Units         New Build/Refurbishment                10% to 30%

Care Homes                Buying/Selling                                     10% to 30%

Care Homes                New Build/Refurbishment                10% to 30%

Retail Units                 Buying/Selling                                     2% to 25%

Retail Units                 New Build/Refurbishment                40% to 80%


Hayven Property Tax Case Studies

Below are just a few of the case studies for claiming capital allowances:

Claims Against Capital Allowance – Office Building Purchase in Cardiff

Purchase Price £1,750,000

Capital Allowance Identified £609,000


Claims Against Capital Allowance – Office Building Refurbishment Newport

Refurbishment Costs £220,000

Capital Allowance Identified £174,000


Claims Against Capital Allowance – Public House Refurbishment Bolton

Refurbishment Costs £372,000

Capital Allowance Identified £98,000


Claims Against Capital Allowance – Warehouse & Offices New Build Cardiff

Building Costs £3,040,000

Capital Allowance Identified £858,000


Claims Against Capital Allowance – Retail Unit Purchase Glasgow

Purchase Price £320,000

Capital Allowance Identified £70,000


Commercial Property Capital Allowance Claims – When To Seek Advice?

Hayven Property Tax will carry out a free appraisal to establish your eligibility to make a claim, so you have nothing to lose from seeking our specialist advice as early as possible.

Commercial Property Capital Allowance Claims – Who Can Claim?

An individual, company or partnership can claim if they incurred the relevant costs or made the purchase. This includes freehold and leasehold ownership. The claimant must be paying income tax or corporation tax in the UK.

Commercial Property Capital Allowance Claims – I Am Planning A Refurbishment

If you are planning, or recently started, a refurbishment project it is possible, through carefully worded contracts and selection of the components in the construction, to plan in the maximum relief against capital allowances. Hayven Property Tax can advise you on the best way forward.

Commercial Property Capital Allowance Claims – Is It Too Late?

There is no time limit to making a claim against capital allowance, as long as the items to be claimed are still in use for the purposes of trading. This means that many claims can go back several years to when the building was first acquired. Hayven Property Tax can advise you on your eligibility.

Commercial Property Capital Allowance Claims – Is This A Tax Loophole?

Claiming against capital allowance is not using a “loophole” in the tax system or “tax avoidance”. It is a legitimate claim against current tax legislation. Your claim will be 100% compliant with HMRC legislation. The claim simply clarifies what you are legally entitled to. At the time of writing, Hayven Property Tax have a 100% success rate with claims made on behalf of clients.

Commercial Property Capital Allowance Claims – Okay, What’s The Catch?

All sounds too good to be true, so what is the catch? The short answer is, there isn’t one. Our services, especially our comprehensive ‘due diligence’, ensures your eligibility to claim and that the claim is 100% compliant with tax legislation.

Commercial Property Capital Allowance Claims – What Do I Need To Do?

Firstly, contact Hayven Property Tax and one of our capital allowance claim consultants will, completely free of charge, assess your eligibility to claim.

There is a lot of paperwork required and writing of statements etc. This can be time consuming and so we are happy to work with your Accountants / Solicitor to acquire this information as required.

About Hayven Property Tax

Hayven Property Tax is run by a team of qualified Chartered Accountants who have an in-depth knowledge of capital allowance claims gained through 10-years experience of submitting 100% HMRC compliant claims.

We do not request any upfront fees, nor do we have any hidden charges. Fees are calculated on your final pool of allowances. Our fees promise, our passion to deliver a great customer service and 100% record in successful claims are why many commercial property owners choose to Hayven Property Tax to make a capital allowance claim.