Search
Close this search box.
Search

Capital Allowances

Learn if you qualify and see
how much you could receive

Capital Allowances

Everything you need to know

Over 50% of commercial property owners are yet to make a Capital Allowances claim. Are you one of them? With 96% of UK businesses missing out on Capital Allowances tax relief, there is more than £70 billion of tax relief left unclaimed. 

The Capital Allowance benefit is aimed at people that fit into any of the wide range of expenditures. Typical items qualifying for capital allowances are cars and vans, computers, machinery, furniture, and non-residential buildings. Owners of UK commercial property, multi-unit residential properties, owners of Furnished Holiday Lets, improving or renovating properties, and selling or purchasing a property.

The Churchill Tax team of tax and valuation experts will carry out thorough due diligence on property transactions. We are experts in valuing allowances on both current and historic acquisitions, making sure you get the full benefit. The team of experienced Chartered Tax Advisers can optimise and correctly categorise a claimant’s Capital Allowances.

The whole process is made simple

Step 1: Client review meeting, with the research of the clients’ purchase or properties
Step 2: Production of a report including any Surveying
Step 3: Review all findings with the client and make sure nothing is missed and has been thoroughly explained to them
Step 4: Submit the claim to HMRC and address and HMRC Questions
Step 5: Clients receive tax relief

Building owners

With you being able to claim 40% of a building’s tax back as a relief; if you aren’t claiming this or are unsure if you can, find out if you are eligible to claim. It does not matter how long you have owned the property for either, whether privately or as a limited company. 

Note:

  • No allowances are usually given for letting out residential property.
  • Currently, there is no limit on retrospective claims. It is possible to make a historic claim as long as the items in the claim are still in use for the purpose of trade.
  • Claims for Capital Allowance Relief must be made as part of your tax return. This could be personal income tax, partnerships, or corporation tax for limited companies.

Example

If a company purchased a new asset (Building) for £500,000 to help its business. If this expenditure is partially funded by a government Capital Grant of £100,000. The total for Capital Allowances will be given on the net expenditure of £400,000.

If you close your business

In the year you close your business, enter a balancing charge or a balancing allowance on your tax return instead of claiming capital allowances. As most companies purchase things to help grow; when you buy business assets you can usually deduct the full value from your profits before tax using annual investment allowance (AIA).

COMPLEX TAX INVESTIGATIONS

BOOK A CONSULTATION

Churchill Tax provides all types of tax advice on complex issues to individuals and companies across all sectors. We make the time and effort to understand our client’s businesses and needs and our tax experts have a proactive and flexible approach to helping clients overcoming the challenges they face.

GOT A QUESTION?

If you are looking to action any of these tips in our guide or if have any other queries about tax and planning your finances for your future, our Private Client Tax team are here to help. Get in touch with a member of the team for an initial chat now.

Your Tax Relief

Process of Capital Allowances?

WHAT WE OFFER

WE UNDERSTAND REQUIREMENTS
We are amongst the UK’s leading Tax specialists with a wealth of experience. We provide professional firms, individuals and privately owned businesses with a comprehensive range of specialist tax & advisory support across all of the major taxes.
WE WORK PRECISELY
When appointing a Tax specialist to act on your behalf, it’s important to know that you’re in good hands. You need to know that the advisor you appoint has the experience, skills and courage required to achieve the best possible outcome for you.
WE DELIVER BEST OUTPUT
Our role is as much about supporting our clients personally as it is about providing professional and effective Tax representation. This is why we have implemented facilities such as flexible payment options , that aim to make the process straight forward and stress free.

Have you received a notification of HMRC investigation?

BOOK A CONSULTATION

Churchill Tax provides all types of tax advice on complex issues to individuals and companies across all sectors. We make the time and effort to understand our client’s businesses and needs and our tax experts have a proactive and flexible approach to helping clients overcoming the challenges they face.

Scroll to Top

Book A Consultation