Property Capital Allowance Consultants
We assist UK businesses in claiming property capital allowances, a type of tax relief given for buying, constructing, and renovating commercial properties.
Moorcroft’s Capital Allowances Consultants are here to ensure that all the requirements are sorted properly so that your property capital allowance claim has the best chance of being approved.
What are Property Capital Allowances in the UK?
‘Property capital allowances’ is a type of capital allowance that covers capital expenditures related to buying, constructing, or renovating a commercial property
Property capital allowances in the UK are open to commercial property owners, landlords, as well as long-term leasers and investors.
Eligible Commercial Properties for Capital Allowances UK
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Offices
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Banks
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Restaurants
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Retail stores
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Shopping centers
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Hotels
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Hospitals
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Nursing homes
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Factories
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Residential rental properties
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Other similar commercial properties
Kinds of Property Capital Allowances
There are various types of capital allowances that businesses can claim on, including the following:
1. Structures & Buildings Capital Allowance
Through the Structures & Buildings property capital allowance businesses can claim a certain percentage (2% or 3%) of construction and renovation costs each year.
Qualified Costs:
Design fees;
Construction site preparation; and
Construction/renovation works.
Further Details:
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The allowance will start when the commercial property is a) first used OR b) the qualifying cost is incurred – whichever of the two conditions happen later.
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The allowance will be ongoing until 33.33 years after the start of the allowance.
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Aside from general exclusions for property capital allowances (e.g. land, legal fees, etc), integral features are separate from this type of property capital allowance.
2. Integral Features Capital Allowance
In some cases, expenditures for improving a commercial property are not from construction or renovation; rather, from installing certain fixtures or integral features.
Though technically not covered by the “Structures & Buildings” property capital allowance, costs for integral features can be claimed under other types of capital allowances, depending on the case.
Qualified Costs:
Lifts, escalators, moving walkways;
Fire alarms;
CCTVs;
Heating systems;
Electrical systems;
External solar shading; and
Fitted kitchens and bathroom suites.
Further Details:
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Integral features can be claimed under the Annual Investment Allowance, wherein the full cost of the integral feature expenditure can be deducted as tax relief – but only up to the set limit for AIA.
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If the AIA has already been maximised, the integral feature expenditure can be claimed under the Special Rate Writing Down Allowance, which offers 6% tax relief.
Expenses That Are NOT Qualified for Property Capital Allowance
Aside from expenditures that are not related to construction, renovation, or integral features, the following expenditures are also generally excluded from property capital allowance claims:
A residential structure or a structure on residential grounds;
Planning permission;
Legal expenses; and
Landscaping or land reclamation.
Moorcroft’s Property Capital Allowance Consultation
As your trusted property capital allowance consultants, Moorcroft is here to support you, every step of the way. We specialize in navigating the nuances of property capital allowances.
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We assess the eligibility of your projects, offer strategic advice on claims, and ensure meticulous documentation and compliance.
With our experience and expertise, we help businesses secure the best possible outcomes for vital property capital allowances.
