What is Capital Allowance on Commercial Property

If you are a business owner looking to maximise tax deductions, one often overlooked area is claiming capital allowances on commercial property. These allowances can significantly reduce your tax liability, but navigating the process can be complex. Complete Capital Allowance will walk you through the steps to unlock valuable tax savings.

1. Understanding Capital Allowances

Capital allowances are tax reliefs available to businesses for certain capital expenditures, including commercial property. They allow you to deduct the cost of eligible assets, such as fixtures and fittings, machinery, and renovations, from your taxable profits.

2. Identifying Eligible Assets

Start by identifying the assets within your commercial property that qualify for capital allowances. This includes items like heating systems, electrical installations, security systems, and other fixtures integral to your business operations. For a more extensive list, click here.

3. Keeping Detailed Records

Maintaining accurate records is crucial for successful capital allowance claims.

Keep invoices, receipts, and documentation related to the purchase and installation of eligible assets. If you have never made a capital allowance claim on your commercial building, at Complete Capital Allowance we will conduct a survey to identify all eligible assets.

4. Calculating Allowances

Different assets attract different rates of allowances, so it’s essential to calculate accurately. You could consult tax regulations, alternatively you could let Complete Capital Allowance make sure you are maximising your claim.5. Including in Tax Returns

Claim capital allowances by including them in your tax returns. Fill out the relevant forms or sections dedicated to capital allowances, ensuring accuracy and completeness. Alternatively, let Complete Capital Allowance manage this process and liaise directly with HMRC if required.

6. Regular Review and Updates

Stay proactive by reviewing your capital allowances regularly. Update your claims as your business acquires new assets or makes changes to existing ones.

By understanding and claiming capital allowances on your commercial property, you can unlock valuable tax benefits for your business. Follow these steps to navigate the process effectively, maximise your savings, and ensure compliance with tax laws. Don’t leave money on the table – explore the potential of capital allowances today!

For more information on how Complete Capital Allowance manages the process on your behalf, please visit our website page here. We support wholesale and retail businesses, hospitality, agriculture, manufacturing and healthcare – so whatever your business, get in touch.