Are You Ready to Capitalise on Capital Allowances?

If you’re a commercial property owner or thinking about becoming one, here’s a question for you: Are you unknowingly leaving tens of thousands of pounds on the table?

The answer might surprise you. Many business owners overlook capital allowances—a powerful financial strategy that could significantly boost your tax relief. Let’s dive into the details and discover how you can unlock this potential goldmine.

What Are Capital Allowances?

Capital allowances are a form of tax relief on certain qualifying investments in property. While the structure of a building generally doesn’t qualify, the fixtures and fittings within it often do.

Here’s an easy way to think about it: If you could flip your property upside down, most of the items that would fall out might qualify!

Examples of Qualifying Items:

• Boilers

• Air conditioning systems

• Electrical systems

• Fitted kitchens

Non-Qualifying Items:

• Walls

• Roofs

• Windows

Why Capital Allowances Matter

1. Applicable Properties

This tax relief primarily applies to commercial properties, such as:

• Offices

• Warehouses

• Hotels

Note: Residential buy-to-let properties are generally excluded.

2. Massive Tax Savings

Here’s the kicker: 15–40% of a commercial property’s purchase price might qualify for capital allowances.

For example:

• On a £1 million property, this could mean up to £400,000 in tax relief.

3. It’s Never Too Late

Did you buy your property years ago? No problem! You can still claim allowances—if they haven’t already been claimed.

How This Impacts Property Deals

Unclaimed capital allowances can be a game-changer when buying, selling, or valuing a property or business.

• Buying a business? Factor unclaimed allowances into your valuation to save big.

• Selling a property? Maximise allowances to make your property more competitive.

Steps to Start Claiming

Ready to claim what’s rightfully yours? Follow these steps:

1. Check Past Claims: Verify if allowances have already been claimed on your property.

2. Hire Experts: Work with a tax specialist or capital allowance surveyor for accurate valuations.

3. Prepare Correctly: Ensure all claims comply with HMRC guidelines to avoid issues later.

Why You Should Act Now

Here’s the harsh truth: If your accountant hasn’t mentioned capital allowances, they’re missing a trick. This isn’t a risky or obscure loophole—it’s a legitimate, HMRC-approved strategy.

Every year you delay could cost you thousands.

Need Help? Let’s Talk

At Profit Cash Growth, we’re here to help you unlock the potential of capital allowances. Whether you’re unsure where to start or need expert guidance, we’ve got you covered.

Ready to take the first step? Contact us today or explore more on our podcast: Are You Ready to Capitalise on Capital Allowances?

Don’t let this opportunity slip through your fingers—start claiming what’s yours now!