What Is Income TaxYou can claim capital allowances when you buy assets that you keep to use in your business, for example on equipment, machinery, business vehicles (cars, vans or lorries). These are known as plant and machinery. You can deduct some or all of the value of the item from your profits before you pay tax.

Below are the capital allowances specifically for buildings tax relief.

Am I eligible to claim?

Yes – if you are a sole trader, a partnership or a limited company and you own commercial property.

What do you mean by commercial property?

Care homes, factories, hotels, industrial units, offices, pubs, shops, restaurants and warehouses.

What do I need to have bought or installed?

Air conditioning, bathrooms, carpets, electrical systems including lighting, hot and cold water systems, kitchens, lifts and even solar shading.

When do I need to make a claim by?

There is no time limit to make a claim providing the item of expenditure is still owned and used for the purpose of trade.

Will I lose out when I come to sell the commercial property?

No – it is not possible for capital allowances to create or increase a chargeable gain.

If I want to make a claim, what needs to happen?

A site survey will need to be carried out, to take an inventory of everything which qualifies for tax relief and a report prepared for HMRC to claim the refund.

How much could I get back?

It depends on what we find, but say £100,000 of qualifying expenditure is identified, then that could result in around £19,000 of corporation tax or £40,000 of income tax savings.

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