Capital Allowances

What are Capital Allowances?

Most UK businesses pay tax on trading profits and have significant interests in commercial property. Capital allowances are the only means of providing tax relief upon capital expenditure incurred by both UK and overseas taxpayers on commercial property.

They act as incentive to invest and save money for these businesses by offsetting tax on profits which would otherwise be due. Capital allowances therefore reduce the amount of tax which all profitable UK companies, businesses and individuals have to pay. Expenditure can be incurred either by way of the acquisition, construction of a property or the refurbishment, fitting out or a contribution to tenant’s works in an existing property.

By maximising the capital allowances available on the acquisition of a property the investment performance of that property can be improved significantly.

Land Remediation Relief

Land Remediation Relief is a tax relief for companies subject to UK Corporation Tax worth 150% of the value of qualifying expenditure, incurred to remediate land/buildings acquired in a contaminated or derelict state.