Cumbrian businesses could be missing out on millions of pounds of unused tax allowances on commercial property

Research has shown that nine in 10 owners of UK commercial property will be due a rebate because of unused capital allowances. Properties such as hotels and nursing homes typically contain fixed plant of between 20% and 35% of the purchase price.  This can make a massive difference to a business’s tax bill as to whether these “hidden” allowances have been claimed or not.  Whilst loose items such as white goods and carpets are usually claimed, it is the fixed items such as heating systems, air conditioning systems and electrical systems that are often missed.

Whilst with commercial property transactions since April 2012, the buyer and seller have to agree the amount qualifying for capital allowances, it remains possible to review properties bought before April 2012 and claim capital allowances now if this was missed at the time of purchase – a fact often overlooked.  Moreover, even on post April 2012 deals it is still currently possible to claim capital allowances on the “apportionment” basis when the previous owner hasn’t claimed.

For example, with a hotel costing £1 million, an average capital allowances claim, properly conducted, would be around £270,000, which for a 40% taxpayer represents a £108,000 tax saving over the life time of the business compared to a nil claim.  A significant proportion of this can result in an immediate tax repayment depending on the tax situation of the business.

Capital allowances can be claimed on any commercial property where the owner is a tax payer.  Some types of commercial property are more plant intensive than others.

At Armstrong Watson we work with local surveyors in order to maximise capital allowance claims on behalf of our clients.

For more information on this please contact David Robinson on 01228 690200 or email

If you like this article and would like our FREE updates sent straight to your inbox then subscribe to our monthly newsletter


Get in touch

To find out more about how we can help you or your business, call us on 0808 144 5575 and speak to a member of our team. Alternatively use our contact form to send us a message or arrange a callback.

CALL 0808 144 5575


Contact Us

All content © 2015 Armstrong Watson. All Rights Reserved. Website by Simon Pighills.

Armstrong Watson LLP is a limited liability partnership registered in England and Wales, number OC415608. The registered office is 15 Victoria Place, Carlisle, CA1 1EW where a list of members is kept. Armstrong Watson Accountants, Business & Financial Advisers is a trading style of Armstrong Watson LLP. Armstrong Watson LLP is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities.

Armstrong Watson Audit Limited is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Registered as a limited company in England and Wales No. 8800970. Registered office: 15 Victoria Place, Carlisle, CA1 1EW

Armstrong Watson Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 542122. Registered as a limited company in England and Wales No. 7208672. Armstrong Watson Financial Planning & Wealth Management is a trading name of Armstrong Watson Financial Planning Limited. Registered Office: 15 Victoria Place, Carlisle, CA1 1EW