Uncover the hidden value of your property and fixtures
Our capital allowance claim service
How does reducing the amount of tax you pay sound? Sounds good, right? We unfortunately see many businesses miss out on this opportunity – either because they’re not aware of capital allowances, or overlook qualifying items in their claim.
That’s where we come in. We’ve got more years’ experience with tax than we care to admit. Our in-house expert capital allowance team will thoroughly review your assets and help to maximise your claim, in turn minimising your tax bill, leaving you with more money to reinvest – or even better, spend on yourself.
What are capital allowances?
Capital Allowances are a tax relief that businesses can claim to reduce their tax bill when they invest in items such as machinery, equipment and commercial property.
You may have heard the term ‘capital allowances’ before, primarily associated with ‘Plant and Machinery’. Whilst this is the wording HMRC uses, its application is far more extensive.
If you’ve spent money on a commercial property—whether building, purchasing, extending or renovating—there’s a chance you haven’t fully taken advantage of the available tax savings. The best part? Capital allowances can help you deduct the value of an item from your profits before tax. This deduction can provide partial or full relief, depending on the type of asset!
Buying or selling a commercial property?
The different types of Capital Allowances
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Annual Investment Allowance
The Annual Investment Allowance (AIA) allows businesses to deduct the full value (100%) of their qualifying plant and machinery purchases from their profits before tax.
The limit of AIA a business can claim in a year is £1 million, and it must be claimed in the period in which you purchased the item.
Qualifying items can include machinery, office equipment, tools, fixtures and fittings.
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Full Expensing
Originally introduced as a temporary measure to stimulate economic growth and investment, is now available for businesses to write off the full cost of qualifying assets in the year they’re purchased.
Full Expenses has a broader scope than AIA, with a more extensive range of assets, with no specific limit.
Qualifying items include: moveable plant and machinery, furnishings, manufacturing equipment, electrical systems, lighting systems, and long-life assets.
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First Year Allowance (FYA)
Similar to Full Expensing, it offers 100% deductions on qualifying asset costs, again as long as they’re deducted in the same year of purchase.
The main difference between the two is that FYA targets energy-saving and environmentally beneficial equipment.
Qualifying items can include integral features of a building which are necessary for business operations and software IT infrastructure.
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Structures and Buildings Allowances (SBA)
If you’re building or renovating a non-residential building, you can take advantage of SBA.
This allowance provides a deduction of 3% per year over a 33.5-year period and must be claimed when the business comes into use.
Qualifying buildings can include offices, retail spaces, factories and warehouses.
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Writing-Down Allowance
If your capital expenditure exceeds the limits of AIA, or is a historic expenditure, there are still options available to them.
Businesses can use the writing-down allowance which means they can deduct a proportion of their costs from their annual profits.
There are two main types of writing down allowances:
- Main Rate: 18% for most plant and machinery.
- Special Rate: 6% for certain assets and integral features.
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Small Pools Allowance
This is a special type of writing-down allowance which applies when the amount of qualifying assets in a pool falls below £1,000.
In this case, the business can instead claim the full amount, as opposed to just the percentage.
This can prove beneficial for small businesses that deal with lower-value assets.
Assets that qualify for capital allowances
We’ll get to work and review every single item of expenditure, making sure it’s been categorised correctly, so you don’t waste another penny of capital allowance.
It’s worth knowing that each category of assets comes with its own set of conditions, allowances and rates, which we’ve put in our resources guide. Talk to us to get more detail on this if it sounds like a good fit for your business.
Plant
Machinery
Business cars
Business vans
Integral features in a building
Property Embedded Features – often missed but vital to a claim
This is the more complicated bit. Buildings themselves don’t usually qualify for capital allowances, but the fixtures and fittings within the buildings do. The good news is, that this can bring you signficant tax savings.
Lifts
Air Conditioning Systems
Heating, Lighting and Solar Systems
CCTV Systems
Furniture and Furnishings
Much more
Benefits of claiming your capital allowances
Capital allowances aren’t a given; they must be claimed as part of your tax return. The benefits aren’t only related to your tax saving, but they can also have a much wider impact on your business.
Tax Relief: The biggest plus is that by claiming their capital allowances, businesses can reduce their taxable profits and lower their tax bill against profits, improving their financial health and supporting growth.
Improved financial planning: Knowing what claims are available means that you can make more informed financial decisions.
Encourage Investment: You can better plan for your company’s future knowing that you can reduce the after-tax cost of investments in your machinery, equipment and technology.
Competitive advantage: Investing in new equipment or keeping up with new technology can help your business maintain its competitive edge.
The team who'll manage your claim...
The latest capital allowance insights
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A new league, a new country, a mountain of paperwork When Christian Nørgaard arrived in the UK in 2019, he was at a pivotal moment in his career. The Danish international, who now has 39 caps for his country, had built a strong reputation playing in Italy, before joining Brentford FC with high expectations.... -
16 January 2026Inheritance Tax Planning after the latest relief changes
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14 January 2026Employment Rights Act: What UK businesses need to know in 2026
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Uncover the hidden value of your commercial property
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Latest news and insights
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19 January 2026
Freed to Focus on Football: How Christian Nørgaard Built Confidence in His UK Financial Future
A new league, a new country, a mountain of paperwork When Christian Nørgaard arrived in the UK in 2019, he was at a pivotal moment in his career. The Danish international, who now has 39 caps for his country, had built a strong reputation playing in Italy, before joining Brentford FC with high expectations.... -
16 January 2026
Inheritance Tax Planning after the latest relief changes
December brought a major shift in inheritance tax planning. From April 2026, the first £2.5 million of qualifying business and agricultural assets will receive full relief—up from the £1 million originally proposed. While this increase is welcome, it doesn’t remove the need for careful planning.... -
14 January 2026
Employment Rights Act: What UK businesses need to know in 2026
The Employment Rights Bill has now passed through Parliament and received Royal Assent, becoming the Employment Rights Act 2025. This landmark legislation represents the most significant overhaul of workplace rights in a decade, with phased implementation starting in April 2026 and continuing into 2027....
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