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About Embedded Capital Allowances

About Embedded Capital Allowances

When you run a business and own a commercial property, outgoings can very quickly build up and knowing whether you qualify for a tax refund of future tax relief can be incredibly helpful. Embedded Capital Allowances are still a relatively unknown tax relief available for commercial property owners, with around 80% of business owners not claiming their capital allowance refunds which are due. Read on to learn what Capital Allowances are, how can you claim a rebate and whether your business qualifies.

What are Capital Allowances?

Capital Allowances are a tax relief designed to incentivise business owners like you to improve their commercial properties. They have been around for decades and are a well-recognised part of the UK tax landscape. They are allowances that provide relief to the tax paid for expenditure incurred when improving a commercial property.

What are Embedded Capital Allowances?

Embedded Capital Allowances or “Property Embedded Fixtures and Fittings” are items that are part of the fabric of the building which have been screwed in, bricked in, nailed in, and plastered in. They are items that are regularly missed by standard accounting practitioners, and they could be a source of a considerable financial benefit for you and your business. What businesses can benefit from an embedded capital allowance claim? Embedded Capital Allowances are valuable for any business or individual who owns property in the UK that is paying (or will soon pay) tax on profit. Relevant businesses and property types include:

  • Cafés and Restaurants

  • Retail and Industrial Units

  • Holiday Lets

  • Care Homes and Nursing Homes

  • Hotels and Guest Houses

  • Pubs and Bars

Regardless of your sector, if you own a commercial property, it is always worth enquiring whether you may have a claim for Embedded Capital Allowances which can lead to a tax refund or tax relief.

Do I qualify for a capital allowance refund or relief? If you own commercial property on a freehold or leasehold and pay tax in the UK then you will probably qualify. If you are not sure whether you qualify, get in touch with our team for a no-obligation consultation. We work on a no-win no-fee basis so there is no risk to you for getting in touch.

What embedded capital allowances can I claim?

Any item of expenditure which has an “enduring benefit” to your business can qualify for tax relief. As a rule of thumb, if it helps customers have a better experience whilst at your commercial property, then it is likely to be claimable. From light fittings to grab rails, you may be surprised at what can qualify for relief.

We’ve created an in-depth list of claimable assets to give you an idea, however as part of the claim process a surveyor will visit your property to define what assets you can claim for.

How does an Embedded Capital Allowance claim work?

Once you have enquired, we will arrange a time to call to understand some basic facts about your business and property. When it is clear a successful claim is possible, we will confirm a date and time for one of our team to visit. It may be possible to undertake a remote site visit. Either way, thy will record or estimate all qualifying items and send the details to a our Chartered Accountant. They will write a report and send it to your accountant who will make the necessary adjustments to your past tax returns or accounts or arrange for future reliefs to be used. The process takes 8 – 12 weeks and we only charge on success.

Start Your Embedded Capital Allowance Claim Today If it sounds like you may qualify for tax refund or tax relief from an Embedded Capital Allowance claim, please don’t hesitate to get in touch with our team by calling us on 0800 678 5040 or fill out a contact form.

How do I get started?

Just contact us however you feel most comfortable and we will be in touch to get the ball rolling.


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