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Capital allowances

Over half of all businesses in the UK do not claim their entitlement to capital allowances, which could be worth hundreds of thousands of pounds.

  • Tax claims can be maximised by consulting with a Markel Tax specialist before incurring any expenditure on commercial property
  • Independent and here to work with you, not compete with you

Identified over £7.5 million worth of qualifying expenditure in 2021

About Capital Allowances

Capital allowances opportunities can arise in a number of different ways:

  • When expenditure is incurred on constructing, purchasing, fitting out, refurbishing or extending a commercial property
  • When buying or selling a commercial property: the value of the capital allowances must be agreed as part of the contract otherwise the claim will be lost

Typical properties that benefit from capital allowances include:

  • Purchase of an office building – allowances available on initial investment plus further claim on any redevelopment costs
  • Hotel acquisition and refurbishment including serviced apartments
  • Restaurants and entertainment venues
  • Residential care homes, nurseries and holiday lets

Make sure your clients aren’t missing out on capital allowance relief.

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Case studies

  • Leisure centre construction

    We engaged our capital allowance partner to review a £1.1million construction and fit out of a client's Northumberland-based leisure centre.

    Using expert qualified capital allowance surveyors, they were able to identify £314,380 as qualifying expenditure, of which £13,267 qualified as enhance capital allowances for relief in year one, providing a total cash saving of £66,020.

  • Care home refurbishment

    We examined the capital expenditure for a £1.8 million refurbishment and extension to a care home. A range of skills including surveying, valuation by a RICS-qualified quantity surveyor and expert knowledge of the capital allowances legislation are essential to not only ensure claims are maximised, but also correct.

    Our capital allowances specialists completed a detailed analysis of the expenditure and undertook a comprehensive survey of completed works. Following this methodology, our report showed an increase on initial estimations of the amount of qualifying expenditure which totalled £600,000.