Capital allowances

Capital allowances are a valuable tax incentive for businesses, encouraging growth and investment by offsetting the cost of qualifying capital expenditure against operating profits. Yet they’re often underclaimed.
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Businesses can claim capital allowances when they purchase plants and machinery, or acquire, construct, refurbish or fit out commercial property used in an ongoing trade or investment business.

Expenditure on property and other fixed assets will often represent a business’s most significant investment cost, but the complexity of capital allowances means many don’t claim their full entitlement.

Getting more from your capital expenditure

We have extensive experience helping businesses across all sectors claim relief on capital investment. Our services range from upfront advice at the start of a project to the preparation of detailed capital allowances reports:

  • Feasibility assessments

    Feasibility reports and estimates of the potential relief to inform financial forecasts or assess the benefits of larger project proposals

  • Detailed cost segregation reports

    Technical capital allowances cost segregation reports to optimise your claims and support your filing position. These reports are suitable for filing with HMRC

  • Automation and systems improvements

    Advising on improvements and simplifications to end-to-end fixed asset processes, using market-leading data analytic technologies and automation tools to create efficiencies

  • Property acquisitions and disposals

    Helping businesses factor capital allowances into commercial negotiations and contract documentation to ensure value is retained and maximised throughout the transaction

  • Past expenditure analysis and historic claims audits

    Past expenditure reviews to identify additional qualifying expenditure that can be included in an open tax return, often resulting in significant cash repayments and future tax savings

  • 100% research and development allowances

    Working with our specialist R&D team to ensure businesses obtain the full benefit of this significant relief for equipment or facilities used for carrying out R&D activities

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  • 150% contaminated land remediation relief claims

    Optimising claims for companies on construction work relating to the costs of remediating land. The relief includes repayable cash credits if the claim creates or increases a loss and can generate significant tax savings

  • Negotiations and claims agreements with HMRC

    We have a proven track record of helping our clients with successful, timely and cost-efficient agreements of claims with HMRC

Our dedicated capital allowances and incentives team is led by specialists with an exceptional blend of tax and survey expertise to help you navigate the complex rules. We specialise in real-time, tailored advice, using proven methods and the latest technologies to minimise disruption to your business and achieve the best outcome.

Get in touch

Martin Dye

Martin Dye

Tax Director

Message +44 204 617 5654
London
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Frequently asked questions about capital allowances

In many instances, capital allowances may have been underclaimed. We can often significantly enhance your business’s claim value by reviewing past expenditure.

We can use our combined tax and surveying experience to fill in the gaps, minimising the demands on you and your team.

With appropriate planning, many capital allowances can be retained and, in most cases, do not impact the capital gains tax implications when the asset is sold.

It is often worth reviewing these elections, because in many cases purchasers still have opportunities to claim relief for additional qualifying expenditure.

There is no time limit for making a claim, provided your business still owns and uses the asset. Past expenditure can often be included in a capital allowances claim for the current period, generating significant cash savings.

Many RDA claims are relatively modest and focused on equipment used solely for R&D activities. More valuable RDA claims for building or equipment used wholly or partly for R&D activities are often overlooked.