Capital allowances for property owners explained


Capital allowances are a great way to reduce your tax liabilities by claiming deductions on certain property-related expenses.

They allow you to offset the cost of capital expenditure – plant, machinery and certain fixtures – against your taxable profits, especially if you have invested in commercial properties or made major improvements.

Who is eligible to claim?

If you own property that generates income, you may be eligible to claim capital allowances.

This includes:

If you are unsure whether you qualify for this allowance, please seek professional advice from an accountant.

What are the types of capital allowances?

Different types of capital allowances exist for property businesses in the UK, each with its own specific rules and requirements – because each asset serves a unique purpose.

These specific rules help ensure that businesses can fairly claim relief based on the nature and longevity of their investments, encouraging improvements and responsible spending.

Some of the most utilised allowances include:

If you are not sure which of these you can claim, talk to one of our accountants. They’ll help you figure out what you are entitled to and find ways to reduce your tax bill.

How do you make a claim?

To claim capital allowances, start by identifying qualifying expenses and gathering any receipts or invoices you will need.

Then, calculate your claim and include it in your annual tax return, making sure everything’s to keep things smooth and hassle-free.

Your next steps

Whether you are an experienced or a first-time landlord, being savvy about capital allowances is key to enhancing your property’s profitability and ensuring your financial success.

By claiming the allowances you are entitled to, you can reduce your tax bill and reinvest those savings back into your property or other ventures.

If you have questions or need assistance with your capital allowance claims, our expert team is here to help.

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