1st Friday
Tax Chat

Buying Commercial Property – Capital Allowances

Buying Commercial Property – Capital Allowances

Continuing our look at buying commercial property, this week we consider capital allowances. 

Capital allowances give tax relief for elements of the capital expenditure incurred on the building itself, known as fixtures.  This includes items such as air conditioning, lifts, heating systems and lighting.

As a result, when buying a second hand building, the history of the capital allowance claims made by the vendor is very important to the purchaser as this will determine what allowances they can claim post-acquisition.

Since 2014 there is a requirement for the vendor to identify all qualifying expenditure on fixtures incurred pre sale, even if no claim for allowances is actually made.  Without this the purchaser cannot claim any capital allowances on the fixtures included within the building when they buy it.

In summary, it pays to ask about capital allowances quite early on in the buying process.  It can take some time to obtain the information needed, but it can result in a good tax saving.

For more information, please contact Lesley Sutton on 01484 550037 or email

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