Capital Allowances for Property Investors
Capital allowances can provide significant tax relief on qualifying expenditure within commercial properties — including integral features, plant and machinery, and fixtures. Specialist capital allowances reviews on acquired or developed commercial properties regularly identify substantial unclaimed reliefs that can generate immediate tax savings.
What are the benefits?
Embedded Allowances in Acquired Property
When acquiring a commercial property, a significant portion of the purchase price may qualify for capital allowances. These embedded allowances are frequently not identified at acquisition, resulting in missed tax relief. We conduct reviews to identify and quantify these allowances.
Fixtures and Integral Features
Fixtures and integral features (electrical systems, heating, lifts, air conditioning) embedded in commercial property qualify for capital allowances. We identify all qualifying items through a detailed survey of the property.
Election to Pool at Historical Value
When purchasing a property from a previous allowances claimant, a joint election (Section 198 election) must be filed to agree the value of allowances being transferred. We ensure elections are made correctly and within the required time limits.
Structures and Buildings Allowance
Commercial buildings (excluding residential) qualify for a 3% annual Structures and Buildings Allowance (SBA) from the date construction expenditure was incurred. We identify all qualifying expenditure and ensure the SBA is claimed from the earliest permitted date.
How can Zenus Tax help?
We conduct a capital allowances review of your commercial property
We quantify and document all qualifying allowances
We prepare Section 198 elections where required on property acquisitions
We ensure allowances are correctly reported in your tax returns
Frequently Asked Questions
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