What exactly are Capital Allowances?

Capital allowances allow an eligible company to receive tax relief on any tangible capital expenditure made by allowing that spend to be expensed against its annual pre-tax income.  In other words, a commercial property owner can offset any hidden expenditure in a commercial property that has been purchased.

Typically, this will include aspects such as, heating and wiring, lighting, air conditioning and even security systems – essentially everything that would remain in the building if you lifted it up, flipped it upside down!

The beauty of Capital Allowances is that all of the UK taxpayers that own a commercial property, whether that’s personally or within an Ltd Company, might be eligible to claim Capital Allowances tax relief. Which will depend on multiple criteria for assessing meaning this can get complicated, however, we take this stress off your hands as part of the NDM Finance.