Commercial Capital Allowances

Capital Allowances are a highly lucrative, yet often overlooked, form of tax relief available to individuals and companies that own commercial property or Furnished Holiday Lets (FHLs). They do not apply to standard residential buy-to-lets.

When you buy a commercial building, a portion of the purchase price is attributed to 'embedded fixtures'—things integral to the building that aren't easily removed, such as heating systems, air conditioning, lifts, specialized lighting, and sanitary ware.

Tax Savings

By hiring a specialist surveyor to identify and value these embedded items, you can deduct their value from your taxable profits. On large commercial assets, this can result in tens of thousands of pounds in tax savings, drastically improving the net yield of the investment.