Capital Allowances
Fuel your business growth with capital allowances through Yuzu Group
What are capital allowances?
Capital allowances are a form of tax-deductible expense, effectively allowing a tax-paying business to write offset the cost of an asset over a period of time. We process capital allowance claims for property-related projects, enabling our clients to write off large amounts of their corporation tax liabilities. Much like R&D tax relief, capital allowance claims are handled and managed by HMRC as a means of incentivising business growth and development. Property and its effective use is paramount for most businesses and their growth. Thus, investment in commercial properties and their development is critical for the economy.
If you have invested or are investing in buying, constructing, extending, refurbishing or fitting out a commercial property and are registered for UK corporation taxation, you're likely entitled to claim capital allowances deductions from your tax bill.
Your entitlement to claim depends upon several factors and complex tax laws, so appraising claims can be tricky. When you use Yuzu Group for your claim, we do the legwork for you with no risk or obligation - if your claim does not qualify, you walk away with no costs incurred.
Types of relief to be claimed
- Permanent fixtures - such as wiring, lighting, air conditioning, and security systems
- Building fabric - elements that characterise the structure, such as walls, internal surfaces, floors, stairs, doors and windows
- Contaminated land - cleaning up contaminated land to convert it into usable commercial premises (also known as 'land remediation')
You're in safe hands
Our professional consulting team has extensive experience in reviewing and submitting successful claims for qualifying businesses, generating millions in tax savings and allowances. We do the legwork and know what to look for to substantiate your claim, creating high-quality narratives to submit to HMRC resulting in our 98% first-time claim success rate with HMRC.
The Juicy Numbers
30
years of professional experience
£
13
k+
commercial properties reviewed
£
58
bn
of property expenditure reviewed
£
1.1
bn
of allowances claimed
£
220
m
of tax saved for clients
Who can claim?
Owners
Occupiers
Investors
Tenants
Landlords
Property developers
What are the benefits of claiming?
- Claim short-term tax/cash benefit
- Reduce or shelter your tax liability
- Claim for many types of commercial property
- Improve your cash flow
- Potential cash refunds/tax rebates
What types of property investment are eligible?
- Offices and office blocks
- Hotels, furnished holiday lets and guest houses
- Health, medical and dental facilities
- Care homes
- Factories, warehouses, power stations and industrial buildings/sites
- Student accommodation and blocks of flats (1)
- Retail and hospitality (2)
- Pure residential (3)
- R&D facilities (4)
- Petrol stations
Notes:
- Typically only the communal areas or facilities qualify so expenditure needs to be £1m+
- Typically most of cost is on fit out
- Capital allowances only apply to commercial property however tax relief for cleaning up land applies to residential properties and housing developments as well
- R&D facilities are very attractive as RDAs apply and allowances can be used quickly to great ROI
Qualification criteria
Your business
Cost thresholds
Land remediation-only
- Registered to pay UK corporation tax
- Profit-making (or expect to be in near future)
- Involved in commercial property
- Owners and investors - must hold the property on their balance sheet as a fixed asset (not as item for sale)
- Tenants/occupiers - usually only incur expenditure on refurbishment or fit-outs
- Property developers - usually only qualify for land remediation relief
- Purchase price - over £500,000 (excluding VAT, stamp duties and professional fees)
- New build constructions - over £400,000
- Refurbishment or fit-outs - over £100,000
- Your business must be a registered Limited company as this is a corporation tax relief only
