Capital Allowances When Buying or Selling Commercial Property .
Unlock Hidden Tax Relief in Commercial Property Transactions.
Capital allowances remain one of the most valuable and underutilised forms of tax relief on commercial property in the UK. Whether you are buying or selling, there is often significant value tied up in fixtures and integral features that can be claimed to reduce your corporation tax or income tax liability.
At Eureka Capital Allowances, we specialise in capital allowances claims on commercial property, helping property owners, investors, and businesses unlock substantial tax savings through a specialist, surveyor-led approach.
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Buying a Commercial Property in the UK .
Claim Capital Allowances on Property Purchases
When purchasing a commercial property, you may be entitled to claim unclaimed capital allowances on assets already within the building.
In many UK commercial property transactions, these items have never been claimed, creating an opportunity for significant tax relief on acquisition.
This is a time sensitive issue and Surveyors are Essential!
Selling a Commercial Property in the UK .
Use Capital Allowances to Strengthen Your Sale
Capital allowances can play a key role in commercial property transactions in the UK, particularly when selling.
A property with clearly documented capital allowances:
- Increases buyer confidence
- Supports stronger offers
- Helps avoid delays in due diligence
Section 198 Elections Explained
When selling a commercial property, it is essential to correctly structure the transfer of capital allowances using a Section 198 election (Capital Allowances Act 2001).
Failure to do so can:
- Prevent the buyer from claiming allowances
- Lead to disputes during the transaction
- Reduce the overall value of the deal
We support vendors and advisers in structuring capital allowances on sale of commercial property to ensure full compliance and optimal outcomes. The sooner we are involved, the better.
Buying from a Charity, Council or Pension Fund.
A Unique Capital Allowances Opportunity
If you are buying from a:
- Charity
- Local authority
- Pension fund
These entities are typically non-taxpayers, meaning they have not claimed capital allowances.
This creates a major opportunity to:
- Make a first-time capital allowances claim
- Access significant UK tax relief on property purchase
- Unlock substantial cash savings
How to know if your property
qualifies for capital allowances.
In order to be eligible for capital allowances, your property must be a commercial property and owned by a UK taxpayer,
whether an individual or company. There are a number of different qualifying commercial properties, including:
Questions.
Have any questions that we haven’t answered here? Get in touch with us and we will do our best to answer them for you!
Why Accountants Can’t Claim These Allowances.
Capital allowances for property cannot be identified from accounts alone and usually require a specialist review of the building itself. As accountants are not trained or insured to carry out building surveys, significant capital allowances are routinely missed without this process.
What Are Capital Allowances?
Capital allowances allow businesses to deduct qualifying capital expenditure on plant and machinery from taxable profits. When a commercial property is purchased, part of the purchase price may relate to qualifying assets already within the building, which are often overlooked but can deliver significant tax relief when properly identified.
Who Can Claim Capital Allowances?
Businesses and property owners who incur qualifying capital expenditure, including those who purchase commercial property, may be entitled to claim.
What Can Qualify?
Capital allowances generally apply to qualifying plant and machinery and certain fixtures within a commercial property. These items are often embedded within the building and, when correctly identified through specialist analysis, can be pooled and claimed for tax relief.