Understanding What Can Be Included in Capital Allowances

If you’ve heard about Capital allowance but need to figure out what qualifies for tax relief, you’re not alone. Knowing what you can include in a claim for Capital Allowances is crucial for maximising tax savings. Let’s break it down.

1. Commercial Property Eligibility

Under the HMRC definition, to qualify for Capital Allowances, the property must be commercial. Residential properties may also qualify if they are used as holiday lets. If you need clarification on eligibility, consulting experts like Complete Capital Allowance can provide guidance tailored to your situation.

2. Fixtures and Fittings

A significant part of Capital Allowances involves identifying and claiming on fixtures and fittings. However, defining what constitutes a ‘fixture or fitting’ can be complex. This is where expert advice becomes invaluable. Complete Capital Allowance’s specialists can help ensure you’re not missing out on maximising your claim.

Breakdown of Fixtures and Fittings:

Electrical: Lighting and electrical systems, data wiring, telephone and TV points and aerials, security alarms, fire and safety alarms.

Plumbing & Heating: Water and heating systems, sprinkler systems, external watering systems (for plants, etc), underground pipework, cold water and water filtration systems, air-conditioning and cooling systems. Plus wine, beer, and drinks, as well as pumps and piping.

Fitted Furniture: This includes bathrooms, kitchens, offices, storage, receptions, bar counters, partitioning, utility rooms and flooring – both soft and hard.

Miscellaneous: This includes swimming pools, ventilation systems, door locks and handles, lifts and escalators, security grills and more.

3. Maximising Your Claim

Capital Allowance claims can be substantial, reaching up to 50% of the overall purchase price for fixtures and fittings. This underscores the importance of thorough identification and accurate reporting. At Complete Capital Allowance, our unique software generates highly accurate fixtures and fittings reports, streamlining the process for our clients and maximising their tax savings.

Don’t leave potential tax savings on the table. Contact Complete Capital Allowance today to ensure you maximise your Capital Allowance claims without the hassle. Our experts are here to help you navigate the complexities and optimise your tax position.