Capital Allowances Advice

Capital allowances become commercially significant when capital expenditure changes taxable profit or when transactions alter entitlement. At that stage, classification and timing determine the relief position

The Annual Investment Allowance allows full deduction of qualifying plant and machinery within statutory limits, often shaping the timing of capital spend.

Plant and machinery cover equipment, systems, and installations used in business operations, including assets embedded within commercial property.

Yes. Office fit-outs often include qualifying expenditure within fixtures and integral features, which
may be eligible for capital allowances if identified and classified correctly.

Integral features are key building systems such as electrical installations, lighting, heating, ventilation, air conditioning, lifts, and hot water systems, which may qualify for capital allowances.

The Structures and Buildings Allowance provides relief on qualifying construction or renovation
costs for non-residential buildings, spread over a fixed period, subject to statutory conditions.

In many cases, capital allowances can be claimed retrospectively on qualifying expenditure from
previous accounting periods, provided the assets are still owned and the claim has not already been
made.

Yes. Property transactions can affect capital allowances entitlement. Allowances require review to
ensure entitlement is secured and protected through purchase and sale agreements.